IDEAS home Printed from https://ideas.repec.org/p/cor/louvco/2021021.html
   My bibliography  Save this paper

Multidimensional poverty measurement and preferences

Author

Listed:
  • Maniquet, François

    (Université catholique de Louvain, LIDAM/CORE, Belgium)

Abstract

Poverty measurement based on income or consumption fails to be consistent with welfare: a higher utility (that is, preference satisfaction) of an individual may go together with an increase in the contribution of this individual to poverty. The equivalence approach, which consists of computing the money needed to maintain a given level of utility, is the way to adjust income poverty measurement so that it becomes consistent with welfare. We review four equivalence approaches, and we compare the properties that each approach satisfies or fails to satisfy. Poverty measurement based on deprivation measures, on the other hand, cannot be adjusted to become consistent with welfare. We discuss how weights and deprivation thresholds can be designed in order to decrease the discrepancy between poverty and welfare in deprivation measures.

Suggested Citation

  • Maniquet, François, 2021. "Multidimensional poverty measurement and preferences," LIDAM Discussion Papers CORE 2021021, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvco:2021021
    as

    Download full text from publisher

    File URL: https://dial.uclouvain.be/pr/boreal/en/object/boreal%3A254719/datastream/PDF_01/view
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Koen Decancq & Marc Fleurbaey & François Maniquet, 2019. "Multidimensional poverty measurement with individual preferences," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 17(1), pages 29-49, March.
    2. Desai, Meghnad & Shah, Anup, 1988. "An Econometric Approach to the Measurement of Poverty," Oxford Economic Papers, Oxford University Press, vol. 40(3), pages 505-522, September.
    3. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-766, May.
    4. Alkire, Sabina & Foster, James, 2011. "Counting and multidimensional poverty measurement," Journal of Public Economics, Elsevier, vol. 95(7), pages 476-487.
    5. Nolan, Brian & Whelan, Christopher T., 1996. "Resources, Deprivation, and Poverty," OUP Catalogue, Oxford University Press, number 9780198287858, Decembrie.
    6. Roberts, Kevin, 1980. "Price-Independent Welfare Prescriptions," Empirical Economics, Springer, vol. 13(3), pages 277-297, June.
    7. Blackorby, Charles & Donaldson, David, 1987. "Welfare ratios and distributionally sensitive cost-benefit analysis," Journal of Public Economics, Elsevier, vol. 34(3), pages 265-290, December.
    8. Daniel T. Slesnick, 1998. "Empirical Approaches to the Measurement of Welfare," Journal of Economic Literature, American Economic Association, vol. 36(4), pages 2108-2165, December.
    9. Samuelson, Paul A & Swamy, S, 1974. "Invariant Economic Index Numbers and Canonical Duality: Survey and Synthesis," American Economic Review, American Economic Association, vol. 64(4), pages 566-593, September.
    10. Angus Deaton, 1979. "The Distance Function in Consumer Behaviour with Applications to Index Numbers and Optimal Taxation," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 46(3), pages 391-405.
    11. Slivinski, Alan D., 1983. "Income distribution evaluation and the law of one price," Journal of Public Economics, Elsevier, vol. 20(1), pages 103-112, February.
    12. Sen, Amartya K, 1976. "Poverty: An Ordinal Approach to Measurement," Econometrica, Econometric Society, vol. 44(2), pages 219-231, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Antonio Villar, 2022. "Welfare poverty and human development," Working Papers 22.04, Universidad Pablo de Olavide, Department of Economics.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Koen Decancq & Marc Fleurbaey & François Maniquet, 2019. "Multidimensional poverty measurement with individual preferences," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 17(1), pages 29-49, March.
    2. Aditi Dimri & François Maniquet, 2020. "Income poverty measurement in India: defining group-specific poverty lines or taking preferences into account?," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 18(2), pages 137-156, June.
    3. Danilo Cavapozzi & Wei Han & Raffaele Miniaci, 2015. "Alternative weighting structures for multidimensional poverty assessment," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 13(3), pages 425-447, September.
    4. Decerf,Benoit Marie A & Ferrando,Mery & Quinn,Natalie N., 2021. "Global Income Poverty Measurement with Preference Heterogeneity : Theory and Application," Policy Research Working Paper Series 9844, The World Bank.
    5. Matthew D. Adler & Koen Decancq, 2021. "Well-Being Measurement," Working Papers 2105, Herman Deleeck Centre for Social Policy, University of Antwerp.
    6. Dipesh Gangopadhyay & Robert B. Nielsen & Velma Zahirovic-Herbert, 2021. "Methodology and Axiomatic Characterization of a Multidimensional and Fuzzy Measure of Deprivation," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 153(1), pages 1-37, January.
    7. Maria Emma Santos, 2014. "Measuring Multidimensional Poverty in Latin America: Previous Experience and the Way Forward," OPHI Working Papers 66, Queen Elizabeth House, University of Oxford.
    8. World Bank, 2022. "A Welfarist Theory Unifying Monetary and Non-Monetary Poverty Measurement," Policy Research Working Paper Series 10076, The World Bank.
    9. Dimri, Aditi & Maniquet, François, 2017. "Poverty measurement (in India): Defining group-specific poverty lines or taking preferences into account?," CAGE Online Working Paper Series 352, Competitive Advantage in the Global Economy (CAGE).
    10. Aysenur Acar, 2014. "The Dynamics of Multidimensional Poverty in Turkey," Working Papers 014, Bahcesehir University, Betam.
    11. Vivien Kana Zeumo & Blaise Some & Alexis Tsoukiàs, 2011. "A survey on Multidimensional Poverty Measurement: a Decision Aiding Perspective," Working Papers hal-00875525, HAL.
    12. Christoph Bader & Sabin Bieri & Urs Wiesmann & Andreas Heinimann, 2016. "Differences Between Monetary and Multidimensional Poverty in the Lao PDR: Implications for Targeting of Poverty Reduction Policies and Interventions," Poverty & Public Policy, John Wiley & Sons, vol. 8(2), pages 171-197, June.
    13. repec:dgr:rugsom:13018-eef is not listed on IDEAS
    14. Yadira Diaz, 2015. "Differences in needs and multidimensional deprivation measurement," Working Papers 387, ECINEQ, Society for the Study of Economic Inequality.
    15. Borooah, Vani, 2007. "Measuring economic inequality: deprivation, economising and possessing," MPRA Paper 19422, University Library of Munich, Germany.
    16. Heindl, Peter & Schuessler, Rudolf, 2015. "Dynamic properties of energy affordability measures," Energy Policy, Elsevier, vol. 86(C), pages 123-132.
    17. Fleurbaey, Marc & Maniquet, François, 2017. "Fairness and well-being measurement," Mathematical Social Sciences, Elsevier, vol. 90(C), pages 119-126.
    18. Mathias KUEPIE & Eric Patrick FEUBI PAMEN, 2017. "An Application of the Alkire-Foster’s Multidimensional Poverty Index to Data from Madagascar: Taking Into Account the Dimensions of Employment and Gender Inequality," Working Paper 6ca04615-044d-41a0-8737-9, Agence française de développement.
    19. Ye, Yuxiang & Koch, Steven F., 2021. "Measuring energy poverty in South Africa based on household required energy consumption," Energy Economics, Elsevier, vol. 103(C).
    20. Sabina Alkire & James Foster, 2011. "Understandings and misunderstandings of multidimensional poverty measurement," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 9(2), pages 289-314, June.
    21. Abel Kinyondo & Riccardo Pelizzo, 2018. "Growth, Employment, Poverty and Inequality in Tanzania," Research Africa Network Working Papers 18/001, Research Africa Network (RAN).

    More about this item

    Keywords

    Multidimensional poverty measurement ; preferences ; equivalent income ; distance function ; welfare ratio ; counting approach;
    All these keywords.

    JEL classification:

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

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cor:louvco:2021021. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Alain GILLIS (email available below). General contact details of provider: https://edirc.repec.org/data/coreebe.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.