Identifying the Poor: A Multiple Indicator Approach
AbstractThe standard approach to the study of poverty assumes the existence of an ideal variable that captures the extent of deprivation. In this paper we postulate that poverty is involved with many dimensions. We use a latent variable framework to predict the extent of an individual's hardship as a function ?i =ax1i + bx2i +..., where the x's are indicators of i's income status, yi, and the latter variable is not observed.
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Bibliographic InfoPaper provided by Suntory and Toyota International Centres for Economics and Related Disciplines, LSE in its series STICERD - Distributional Analysis Research Programme Papers with number 09.
Date of creation: Jun 1994
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Poverty; latent variable; indicators;
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