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Distributional Justice and Efficiency: Integrating Inequality Within and Between Dimensions in Additive Poverty Indices

Author

Listed:
  • Nicole Rippin

    (German Development Institute (DIE))

Abstract

According to Sen (1976), any reasonable poverty index ought to be sensitive to inequality. In a multidimensional framework, inequality between poverty dimensions is traditionally treated as association sensitivity. Such an approach, however, is based exclusively on efficiency considerations, thereby neglecting all aspects of distributive justice. This paper introduces a new property for dealing with inequality that accounts for both efficiency as well as distributive justice. Based on the new property, it then proceeds to derive a new class of inequality-sensitive poverty measures whose advantages are demonstrated by an empirical application to 28 developing countries.

Suggested Citation

  • Nicole Rippin, 2012. "Distributional Justice and Efficiency: Integrating Inequality Within and Between Dimensions in Additive Poverty Indices," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 128, Courant Research Centre PEG.
    • Handle: RePEc:got:gotcrc:128
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    File URL: http://www2.vwl.wiso.uni-goettingen.de/courant-papers/CRC-PEG_DP_128.pdf
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    More about this item

    Keywords

    Multidimensional poverty measurement; counting indices; inequality; correlation sensitivity; identification;
    All these keywords.

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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