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Statistical Inference and the Sen Index of Poverty

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Author Info
Bishop, John A
Formby, John P
Zheng, Buhong
Abstract

Statistical inference procedures are developed for A. K. Sen's distribution-sensitive index of poverty and each of its components--the headcount ratio, income gap ratio, and the Gini index of the poor. Using results from U-statistics, the authors show that estimates of the index and its components all have a jointly asymptotically normal distribution and the variance-covariance structure can be consistently estimated. The inference tests are illustrated by applying them to the same microeconomic data set used in estimating official U.S. poverty statistics. The application reveals that the Sen index increased significantly in each of the three periods considered. Copyright 1997 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.

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Publisher Info
Article provided by Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association in its journal International Economic Review.

Volume (Year): 38 (1997)
Issue (Month): 2 (May)
Pages: 381-87
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Handle: RePEc:ier:iecrev:v:38:y:1997:i:2:p:381-87

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  1. Kuan Xu & Lars Osberg, 2000. "The Social Welfare Implications, Decomposability, and Geometry of the Sen Family of Poverty Indices," Department of Economics at Dalhousie University working papers archive sendeco, Dalhousie, Department of Economics. [Downloadable!]
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  2. Robert H. DeFina, 2002. "The impact of unemployment on alternative poverty measures," Working Papers 02-8, Federal Reserve Bank of Philadelphia. [Downloadable!]
  3. Ian Irvine & Kuan Xu, 2002. "Crime, Punishment and Poverty in the United States," Department of Economics at Dalhousie University working papers archive uspov, Dalhousie, Department of Economics. [Downloadable!]
  4. Kuan Xu & Lars Osberg, 2002. "On Sen's Approach to Poverty Measures and Recent Developments," Department of Economics at Dalhousie University working papers archive sensw, Dalhousie, Department of Economics. [Downloadable!]
  5. Sudip Ranjan Basu & Jaya Krishnakumar & Gabriela Flores, 2004. "Spatial Distribution of Welfare Across States and Different Socio-Economic Groups in Rural and Urban India," Cahiers du Département d'Econométrie 2004.14, Département d'Econométrie, Université de Genève. [Downloadable!]
  6. Gabriela Flores & Jaya Krishnakumar & Sudip Ranjan Basu, 2004. "Demand System Estimations and Welfare Comparisons: Application to Indian Household Data," Cahiers du Département d'Econométrie 2004.13, Département d'Econométrie, Université de Genève. [Downloadable!]
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