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On the Watts Multidimensional Poverty Index and its Decomposition

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  • Chakravarty, Satya R.
  • Deutsch, Joseph
  • Silber, Jacques

Abstract

Summary The multidimensional extension of the Watts poverty index may be expressed as a function of five determinants measuring, respectively, the impacts of what are defined in the paper as the Watts poverty gap ratio, the Theil-Bourguignon index of inequality among the poor, the overall headcount ratio, the weights of the various dimensions, and some measure of correlation between the various dimensions. Using the Shapley decomposition, we apply this index to world data on the per capita GDP, life expectancy, and literacy rates and derive the contributions of the five determinants defined above to the variation of this index during 1993-2002.

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Bibliographic Info

Article provided by Elsevier in its journal World Development.

Volume (Year): 36 (2008)
Issue (Month): 6 (June)
Pages: 1067-1077

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Handle: RePEc:eee:wdevel:v:36:y:2008:i:6:p:1067-1077

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References

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  1. Esfandiar Maasoumi & Maria Ana Lugo, 2008. "The Information Basis of Multivariate Poverty Assessments," Emory Economics 0804, Department of Economics, Emory University (Atlanta).
  2. Bourguignon, Francois, 1979. "Decomposable Income Inequality Measures," Econometrica, Econometric Society, vol. 47(4), pages 901-20, July.
  3. Kakwani, Nanak, 1980. "On a Class of Poverty Measures," Econometrica, Econometric Society, vol. 48(2), pages 437-46, March.
  4. Kai-yuen Tsui, 2002. "Multidimensional poverty indices," Social Choice and Welfare, Springer, vol. 19(1), pages 69-93.
  5. Sen, Amartya K, 1976. "Poverty: An Ordinal Approach to Measurement," Econometrica, Econometric Society, vol. 44(2), pages 219-31, March.
  6. Shorrocks, A F, 1980. "The Class of Additively Decomposable Inequality Measures," Econometrica, Econometric Society, vol. 48(3), pages 613-25, April.
  7. Lipton, Michael & Ravallion, Martin, 1993. "Poverty and policy," Policy Research Working Paper Series 1130, The World Bank.
  8. Ravallion, Martin, 1996. "Issues in Measuring and Modelling Poverty," Economic Journal, Royal Economic Society, vol. 106(438), pages 1328-43, September.
  9. Shorrocks, Anthony F, 1995. "Revisiting the Sen Poverty Index," Econometrica, Econometric Society, vol. 63(5), pages 1225-30, September.
  10. François Bourguignon & Satya Chakravarty, 2003. "The Measurement of Multidimensional Poverty," Journal of Economic Inequality, Springer, vol. 1(1), pages 25-49, April.
  11. Satya Ranjan Chakravarty, 1983. "Ethically Flexible Measures of Poverty," Canadian Journal of Economics, Canadian Economics Association, vol. 16(1), pages 74-85, February.
  12. Chakravarty, Satya R., 1983. "A new index of poverty," Mathematical Social Sciences, Elsevier, vol. 6(3), pages 307-313, December.
  13. Mercedes Sastre & Alain Trannoy, 2002. "Shapley inequality decomposition by factor components: Some methodological issues," Journal of Economics, Springer, vol. 9(1), pages 51-89, December.
  14. Blakorby, Charles & Donaldson, David, 1980. "Ethical Indices for the Measurement of Poverty," Econometrica, Econometric Society, vol. 48(4), pages 1053-60, May.
  15. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May.
  16. Clark, Stephen & Hemming, Richard & Ulph, David, 1981. "On Indices for the Measurement of Poverty," Economic Journal, Royal Economic Society, vol. 91(362), pages 515-26, June.
  17. Takayama, Noriyuki, 1979. "Poverty, Income Inequality, and Their Measures: Professor Sen's Axiomatic Approach Reconsidered," Econometrica, Econometric Society, vol. 47(3), pages 747-59, May.
  18. Satya R. Chakravarty, 1997. "On Shorrocks' Reinvestigation of the Sen Poverty Index," Econometrica, Econometric Society, vol. 65(5), pages 1241-1242, September.
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Cited by:
  1. Ravallion, Martin, 2011. "On multidimensional indices of poverty," Policy Research Working Paper Series 5580, The World Bank.
  2. Mª Casilda Lasso de la Vega & Ana Urrutia & Henar Diez, 2009. "The Bourguignon and Chakravarty multidimensional poverty family: A characterization," Working Papers 109, ECINEQ, Society for the Study of Economic Inequality.
  3. Florent Bresson & Jean-Yves Duclos, 2012. "Intertemporal poverty comparisons," Working Papers halshs-00828049, HAL.

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