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Multi-Dimensional Analysis of Poverty in Ghana Using Fuzzy Sets Theory

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Author Info
Kojo Appiah-Kubi
Edward Amanning-Ampomah
Christian Ahortor
Abstract

The paper studies the multidimensional aspects of poverty and living conditions in Ghana. The aim is to fill the vacuum that has been left by traditional uni-dimensional measures of deprivation based on poverty lines, exclusively estimated on the basis of monetary variables such as income or consumption expenditure. It combines monetary and non-monetary, and qualitative and quantitative indicators, including housing conditions, the possession of durable goods, equivalent disposable income, and equivalent expenditure, with a number of composite human welfare measures. The study employs the fuzzy-set theoretic framework to compare levels of deprivation in Ghana over time usig micro data from the last two rounds of the Ghana Living Standard Surveys (1991/1992 and 1998/1999). The estimation results of the membership functions, depicting the levels of deprivation for the various categories of deprivation indicators, show a composite deprivation degree of 0.2137 for the whole country in 1998/99 as compared to 0.2123 in 1991/92. This deprivation trend reveals that poverty levels hard scarcely changed in Ghana. In fact, it even rose slightly during the nineties, contrary to the uni-dimensional analytical GLSS 4 report of an overall broadly favourable trend in poverty in Ghana during the 1990s.

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Paper provided by PEP-PMMA in its series Cahiers de recherche PMMA with number 2007-21.

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Date of creation: 2007
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Handle: RePEc:lvl:pmmacr:2007-21

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Related research
Keywords: Ghana fuzzy set multi-dimensional poverty composite deprivation or poverty index

Find related papers by JEL classification:
A1 - General Economics and Teaching - - General Economics
A2 - General Economics and Teaching - - Economics Education and Teaching of Economics
A23 - General Economics and Teaching - - Economics Education and Teaching of Economics - - - Graduate
A29 - General Economics and Teaching - - Economics Education and Teaching of Economics - - - Other
I3 - Health, Education, and Welfare - - Welfare and Poverty
I32 - Health, Education, and Welfare - - Welfare and Poverty - - - Measurement and Analysis of Poverty
I38 - Health, Education, and Welfare - - Welfare and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
I39 - Health, Education, and Welfare - - Welfare and Poverty - - - Other
R2 - Urban, Rural, and Regional Economics - - Household Analysis
R20 - Urban, Rural, and Regional Economics - - Household Analysis - - - General
R21 - Urban, Rural, and Regional Economics - - Household Analysis - - - Housing Demand
R22 - Urban, Rural, and Regional Economics - - Household Analysis - - - Other Demand

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