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Duration and Multidimensionality in Poverty Measurement

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  • Aaron Nicholas

    ()

  • Ranjan Ray
  • Kompal Sinha

    ()

Abstract

This paper unites two strands of the literature on subgroup decomposable poverty measurement originating from Foster, Greer and Thorbecke (1984) by incorporating information on both multiple dimensions and multiple periods. This generalises the Alkire and Foster (2011a) measure into a dynamic setting. In doing so, it introduces two variants of the ‘transfer’ axiom: one that gives increasing weight to individuals whose deprivations are concentrated as repeated dimensions in a specific period (what we term ‘breadth’) versus one that gives increasing weight to individuals whose deprivations are concentrated as repeated periods in a specific dimension (‘length’). The measure is able to differentiate between both aspects of poverty and consequently allows the assignment of different weights to each aspect. This makes it well suited to make comparison across subgroups when individual longitudinal data is available. We apply the proposed measure to longitudinal data from China where we compare differences in the estimate of poverty relative to existing measures.

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Bibliographic Info

Paper provided by Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance in its series Economics Series with number 2013_9.

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Date of creation: 25 Nov 2013
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Handle: RePEc:dkn:econwp:eco_2013_9

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Keywords: Multidimensional Poverty; Duration of Poverty; Transfer Axiom; Subgroup Decomposability;

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  1. Jean-Yves Duclos & Abdelkrim Araar & John Giles, 2006. "Chronic and Transient Poverty: Measurement and Estimation, with Evidence from China," Cahiers de recherche 0611, CIRPEE.
  2. Carlos Gradín & Coral Del Río & Olga Cantó, 2012. "Measuring Poverty Accounting For Time," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 58(2), pages 330-354, 06.
  3. BOSSERT, Walter & CHAKRAVARTY, Satya R. & D’AMBROSIO, Conchita, 2008. "Poverty and Time," Cahiers de recherche 05-2008, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
    • Bossert, Walter & Chakravarty, Satya R. & d’Ambrosio, Conchita, 2010. "Poverty and Time," Working Paper Series wp2010-74, World Institute for Development Economic Research (UNU-WIDER).
    • Walter Bossert & Satya R. Chakravarty & Conchita D’Ambrosio, 2008. "Poverty and Time," Working Papers 87, ECINEQ, Society for the Study of Economic Inequality.
    • BOSSERT, Walter & CHAKRAVARTY, Satya R. & D’AMBROSIO, Conchita, 2008. "Poverty and Time," Cahiers de recherche 2008-05, Universite de Montreal, Departement de sciences economiques.
  4. Kai-yuen Tsui, 2002. "Multidimensional poverty indices," Social Choice and Welfare, Springer, vol. 19(1), pages 69-93.
  5. BOSSERT, Walter & D'AMBROSIO, Conchita & PERAGINE, Vito, 2004. "Deprivation and Social Exclusion," Cahiers de recherche 02-2004, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
  6. Alkire, Sabina & Foster, James, 2011. "Counting and multidimensional poverty measurement," Journal of Public Economics, Elsevier, vol. 95(7-8), pages 476-487, August.
  7. Aaron Nicholas & Ranjan Ray, 2011. "Duration and Persistence in Multidimensional Deprivation: Methodology and Australian Application," Development Research Unit Working Paper Series 10-11, Monash University, Department of Economics.
  8. Hojman, Daniel Andres & Kast, Felipe, 2009. "On the Measurement of Poverty Dynamics," Scholarly Articles 4449107, Harvard Kennedy School of Government.
  9. Hoy, Michael & Zheng, Buhong, 2011. "Measuring lifetime poverty," Journal of Economic Theory, Elsevier, vol. 146(6), pages 2544-2562.
  10. Amos Tversky & Daniel Kahneman, 1979. "Prospect Theory: An Analysis of Decision under Risk," Levine's Working Paper Archive 7656, David K. Levine.
  11. Sen, Amartya K, 1976. "Poverty: An Ordinal Approach to Measurement," Econometrica, Econometric Society, vol. 44(2), pages 219-31, March.
  12. Walter Bossert & Satya R. Chakravarty & Conchita D'Ambrosio, 2013. "Multidimensional Poverty and Material Deprivation with Discrete Data," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 59(1), pages 29-43, 03.
  13. Sabina Alkire and James Foster, 2011. "Understandings and Misunderstandings of Multidimensional Poverty Measurement," OPHI Working Papers ophiwp043, Queen Elizabeth House, University of Oxford.
  14. Gaurav Datt, 2013. "Making every dimension count: multidimensional poverty without the “dual cut offâ€," Development Research Unit Working Paper Series 32-13, Monash University, Department of Economics.
  15. Ray, Ranjan & Mishra, Ankita, 2012. "Multi-dimensional deprivation in the awakening giants: A comparison of China and India on micro data," Journal of Asian Economics, Elsevier, vol. 23(4), pages 454-465.
  16. Satya R. Chakravarty & Conchita D'Ambrosio, 2006. "The Measurement Of Social Exclusion," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 52(3), pages 377-398, 09.
  17. Bourguignon, F. & Chakravarty, S.R., 1998. "The Measurement of Multidimensional Poverty," DELTA Working Papers 98-12, DELTA (Ecole normale supérieure).
  18. Cesar Calvo & Stefan Dercon, 2007. "Chronic Poverty and All That: The Measurement of Poverty over Time," Economics Series Working Papers WPS/2007-04, University of Oxford, Department of Economics.
  19. Manimay Sengupta, 2009. "Unemployment duration and the measurement of unemployment," Journal of Economic Inequality, Springer, vol. 7(3), pages 273-294, September.
  20. A. Atkinson, 2003. "Multidimensional Deprivation: Contrasting Social Welfare and Counting Approaches," Journal of Economic Inequality, Springer, vol. 1(1), pages 51-65, April.
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