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Sequential Stochastic Dominance And The Robustness Of Poverty Orderings

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Author Info
Jean-Yves Duclos
Paul Makdissi

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Abstract

When comparing poverty across distributions, an analyst must select a poverty line to identify the poor, an equivalence scale to compare individuals from households of different compositions and sizes, and a poverty index to aggregate individual deprivation into an index of total poverty. A different choice of poverty line, poverty index or equivalence scale can of course reverse an initial poverty ordering. This paper develops easily-checked sequential stochastic dominance conditions that throw light on the robustness of poverty comparisons to these important measurement issues. These general conditions extend well-known results to any order of dominance, to the choice of individual versus family based aggregation, and to the estimation of "critical sets" of measurement assumptions. Our theoretical results are briefly illustrated using data for four countries drawn from the Luxembourg Income Study databases. Copyright 2005 Blackwell Publishing Ltd.

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File URL: http://www.blackwell-synergy.com/links/doi/10.1111/j.1475-4991.2005.00145.x/enhancedabs
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Publisher Info
Article provided by Blackwell Publishing in its journal Review of Income and Wealth.

Volume (Year): 51 (2005)
Issue (Month): 1 (03)
Pages: 63-87
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Handle: RePEc:bla:revinw:v:51:y:2005:i:1:p:63-87

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  1. Paul Makdissi & Quentin Wodon, 2004. "Migration, poverty, and housing in Honduras," Estudios de Economia, University of Chile, Department of Economics, vol. 31(1 Year 20), pages 5-20, June. [Downloadable!]
  2. William C. Horrace & Joseph T. Marchand & Timothy M. Smeeding, 2005. "Ranking Inequality: Applications of Multivariate Subset Selection," Center for Policy Research Working Papers 70, Center for Policy Research, Maxwell School, Syracuse University. [Downloadable!]
    Other versions:
  3. Duclos, Jean-Yves & Makdissi, Paul & Wodon, Quentin, 2003. "Poverty-Reducing Tax Reforms with Heterogeneous Agents," Cahiers de recherche 0313, CIRPEE. [Downloadable!]
    Other versions:
  4. Christiaensen, Luc & Scott, Christopher & Wodon, Quentin, 2002. "Poverty Measurement and Analysis," MPRA Paper 11810, University Library of Munich, Germany. [Downloadable!]
  5. Jean-Yves Duclos & David Sahn & Stephen D. Younger, 2005. "Robust Multidimensional Spatial Poverty Comparisons in Ghana, Madagascar, and Uganda," Cahiers de recherche 0528, CIRPEE. [Downloadable!]
    Other versions:
  6. Claudio Zoli & Peter J. Lambert, 2005. "Sequential procedures for poverty gap dominance," University of Oregon Economics Department Working Papers 2005-1, University of Oregon Economics Department, revised 01 Jan 2005. [Downloadable!]
  7. Coudouel, Aline & Hentschel, Jesko & Wodon, Quentin, 2002. "Измерение И Анализ Бедности
    [Poverty Measurement and Analysis]    ," MPRA Paper 10492, University Library of Munich, Germany. [Downloadable!]
  8. Paul Makdissi & Quentin Wodon, 2006. "Fuel poverty and access to electricity: comparing households when they differ in needs," Applied Economics, Taylor and Francis Journals, vol. 38(9), pages 1071-1078, May. [Downloadable!] (restricted)
  9. Paul Makdissi & Quentin Wodon & Yannick Therrien, 2005. "Public Transfers, Equivalence Scales and Poverty in Canada and the United States," Cahiers de recherche 05-04, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke. [Downloadable!]
  10. Jean-Yves Duclos & David Sahn & Stephen D. Younger, 2006. "Robust Multidimensional Poverty Comparisons with Discrete Indicators of Well-being," Cahiers de recherche 0628, CIRPEE. [Downloadable!]
  11. Coudouel, Aline & Hentschel, Jesko & Wodon, Quentin, 2002. "Mesure et analyse de la pauvreté
    [Poverty Measurement and Analysis]    ," MPRA Paper 10490, University Library of Munich, Germany. [Downloadable!]
  12. Paul Makdissi & Stéphane Mussard, 2006. "Decomposition of s - Concentration Curves," Cahiers de recherche 0641, CIRPEE. [Downloadable!]
    Other versions:
  13. Coudouel, Aline & Hentschel, Jesko & Wodon, Quentin, 2002. "Medición y análisis de la pobreza
    [Poverty Measurement and Analysis]    ," MPRA Paper 10491, University Library of Munich, Germany. [Downloadable!]
  14. Paul Makdissi & Quentin Wodon, 2001. "Fuel Poverty and Access to Electricity:\\ Comparing Households When They Differ in Needs," Cahiers de recherche 01-03, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke, revised 2004. [Downloadable!]
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