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A New Multiplicative Decomposition For The Foster-Greer-Thorbecke Poverty Indices

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Author Info

  • Oihana Aristondo

    ()
    (University of the Basque Country. Spain)

  • Casilda Lasso de la Vega

    ()
    (University of the Basque Country. Spain)

  • Ana Urrutia

    ()
    (University of the Basque Country. Spain)

Abstract

This paper identifies a multiplicative decomposition for the Foster-Greer-Thorbecke poverty indices as a product of the three components which should be involved in every poverty index: the incidence of poverty, measured by the headcount ratio, the intensity of poverty, measured by the aggregate income gap ratio and the inequality among the poor measured by an increasing transformation of the corresponding inequality index of the Generalized Entropy family. Then, taking data from the Spanish Household Budget Surveys (SHB) as a basis we show the advantages and possibilities of this framework in regard to completing and detailing information in studies of poverty over time.

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Bibliographic Info

Paper provided by ECINEQ, Society for the Study of Economic Inequality in its series Working Papers with number 91.

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Length: 9 pages
Date of creation: 2008
Date of revision:
Handle: RePEc:inq:inqwps:ecineq2008-91

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Keywords: Poverty Measurement; Foster-Greer-Thorbecke poverty indices; Multiplicative Decomposition.;

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Cited by:
  1. Oihana Aristondo & José Luis García-Lapresta & Casilda Lasso de la Vega & Ricardo Alberto Marques Pereira, 2011. "The Gini index,the dual decomposition of aggregation functions, and the consistent measurement of inequality," Working Papers 203, ECINEQ, Society for the Study of Economic Inequality.

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