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A New Multiplicative Decomposition For The Foster–Greer–Thorbecke Poverty Indices

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  • Oihana Aristondo
  • Casilda Lasso De La Vega
  • Ana Urrutia

Abstract

This paper shows that Foster–Greer–Thorbecke poverty indices can be written as the product of components summarizing the incidence, intensity and inequality dimensions of poverty and provides an empirical illustration of the decomposition using Spanish household budget surveys data.

Suggested Citation

  • Oihana Aristondo & Casilda Lasso De La Vega & Ana Urrutia, 2010. "A New Multiplicative Decomposition For The Foster–Greer–Thorbecke Poverty Indices," Bulletin of Economic Research, Wiley Blackwell, vol. 62(3), pages 259-267, July.
    • Handle: RePEc:bla:buecrs:v:62:y:2010:i:3:p:259-267
    DOI: 10.1111/j.1467-8586.2009.00320.x
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    References listed on IDEAS

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    1. Foster, James E & Shorrocks, Anthony F, 1991. "Subgroup Consistent Poverty Indices," Econometrica, Econometric Society, vol. 59(3), pages 687-709, May.
    2. Clark, Stephen & Hemming, Richard & Ulph, David, 1981. "On Indices for the Measurement of Poverty," Economic Journal, Royal Economic Society, vol. 91(362), pages 515-526, June.
    3. Bourguignon, Francois, 1979. "Decomposable Income Inequality Measures," Econometrica, Econometric Society, vol. 47(4), pages 901-920, July.
    4. A.B. Atkinson & F. Bourguignon (ed.), 2000. "Handbook of Income Distribution," Handbook of Income Distribution, Elsevier, edition 1, volume 1, number 1.
    5. Frank A. Cowell, 1980. "On the Structure of Additive Inequality Measures," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 47(3), pages 521-531.
    6. Shorrocks, Anthony F, 1984. "Inequality Decomposition by Population Subgroups," Econometrica, Econometric Society, vol. 52(6), pages 1369-1385, November.
    7. Lars Osberg & Kuan Xu, 2000. "International Comparisons of Poverty Intensity: Index Decomposition and Bootstrap Inference," Journal of Human Resources, University of Wisconsin Press, vol. 35(1), pages 51-81.
    8. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-766, May.
    9. Foster, James E. & Shorrocks, Anthony F., 1988. "Inequality and poverty orderings," European Economic Review, Elsevier, vol. 32(2-3), pages 654-661, March.
    10. Angus Deaton & Salman Zaidi, 2002. "Guidelines for Constructing Consumption Aggregates for Welfare Analysis," World Bank Publications, The World Bank, number 14101, April.
    11. Sen, Amartya K, 1976. "Poverty: An Ordinal Approach to Measurement," Econometrica, Econometric Society, vol. 44(2), pages 219-231, March.
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    Citations

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    Cited by:

    1. Lin Yang, 2017. "The relationship between poverty and inequality: Concepts and measurement," CASE Papers /205, Centre for Analysis of Social Exclusion, LSE.
    2. Croon, T.M. & Hoekstra, J.S.C.M. & Elsinga, M.G. & Dalla Longa, F. & Mulder, P., 2023. "Beyond headcount statistics: Exploring the utility of energy poverty gap indices in policy design," Energy Policy, Elsevier, vol. 177(C).
    3. Oihana Aristondo & Francisco J. Goerlich Gisbert & Casilda Lasso De La Vega, 2015. "A Proposal to Compare Consistently the Inequality Among the Poor," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 61(3), pages 561-572, September.
    4. Tomson Ogwang, 2022. "The Foster–Greer–Thorbecke Poverty Measures Reveal More," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 164(3), pages 1481-1503, December.
    5. Valérie Bérenger, 2017. "Using ordinal variables to measure multidimensional poverty in Egypt and Jordan," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 15(2), pages 143-173, June.
    6. Suman Seth, Sabina Alkire, 2014. "Measuring and Decomposing Inequality among the Multidimensionally Poor Using Ordinal Data: A Counting Approach," OPHI Working Papers 68, Queen Elizabeth House, University of Oxford.
    7. Yang, Lin, 2017. "The relationship between poverty and inequality: concepts and measurement," LSE Research Online Documents on Economics 103491, London School of Economics and Political Science, LSE Library.
    8. Ottó Hajdu, 2021. "A New Generalized Variance Approach for Measuring Multidimensional Inequality and Poverty," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 158(3), pages 839-861, December.
    9. Valérie Bérenger, 2017. "The counting approach to multidimensional poverty: The case of four African countries," WIDER Working Paper Series 210, World Institute for Development Economic Research (UNU-WIDER).
    10. Francesco Burchi & Daniele Malerba & Claudio E. Montenegro & Nicole Rippin, 2022. "Assessing Trends in Multidimensional Poverty During the MDGs," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 68(S2), pages 317-346, December.
    11. Giuseppe Pignataro & Michele Costa, 2023. "The Foster-Greer-Thorbecke index and the inequality factors: an analysis through the Gini index decomposition," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 21(2), pages 483-497, June.
    12. Valérie Bérenger, 2017. "Using ordinal variables to measure multidimensional poverty in Egypt and Jordan," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 15(2), pages 143-173, June.
    13. Oihana Aristondo & José Luis García-Lapresta & Casilda Lasso de la Vega & Ricardo Alberto Marques Pereira, 2011. "The Gini index,the dual decomposition of aggregation functions, and the consistent measurement of inequality," Working Papers 203, ECINEQ, Society for the Study of Economic Inequality.
    14. Valérie Bérenger, 2017. "The counting approach to multidimensional poverty: The case of four African countries," WIDER Working Paper Series wp-2017-210, World Institute for Development Economic Research (UNU-WIDER).

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    More about this item

    JEL classification:

    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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