Multidimensional Poverty Frontiers: Parametric Aggregators Based on Nonparametric Distributions
AbstractWe propose a new technique for the estimation of multidimensional evaluation functions. Technical advances allow nonparametric inference on the joint distribution of continuous and discrete indicators of well-being, such as income and health, conditional on joint values of other continuous and discrete attributes, such as education and geographical groupings. In a multiattribute setting, "quantiles" are "frontiers" that define equivalent sets of covariate values. We identify these frontiers nonparametrically at first. Then we suggest "parametrically equivalent" characterizations of these frontiers that reveal likely, but different, weights for and substitutions between different attributes for different groups, and at different quantiles. These estimated parametric functionals are "ideal" in a certain sense which we make clear. They correspond directly to measures of aggregate well-being popularized in the earliest multidimensional inequality measures in Maasoumi (1986). This new approach resolves a classic problem of assigning weights to dimensions of well-being, as well as empirically incorporating the key component in multidimensional analysis, the relationship between the attributes. It introduces a new way to robust estimation of "quantile frontiers", allowing "complete" assessments, such as multidimensional poverty measurements. We discover massive heterogeneity in individual evaluation functions. This leads us to perform robust, weak uniform rankings as afforded by nonparametric tests for stochastic dominance. A demonstration is provided based on the Indonesian data analyzed for multidimensional poverty in Maasoumi & Lugo (2008).
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by McMaster University in its series Department of Economics Working Papers with number 2013-07.
Length: 27 pages
Date of creation: Mar 2013
Date of revision:
Contact details of provider:
Postal: 1280 Main Street West, Hamilton, Ontario, L8S 4M4
Phone: (905) 525-9140 ext. 22765
Fax: (905) 521-8232
Web page: http://www.economics.mcmaster.ca/
More information through EDIRC
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-03-23 (All new papers)
- NEP-ECM-2013-03-23 (Econometrics)
- NEP-LTV-2013-03-23 (Unemployment, Inequality & Poverty)
- NEP-SEA-2013-03-23 (South East Asia)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Peter Hall & Jeff Racine & Qi Li, 2004. "Cross-Validation and the Estimation of Conditional Probability Densities," Journal of the American Statistical Association, American Statistical Association, American Statistical Association, vol. 99, pages 1015-1026, December.
- Qi Li & Jeffrey Scott Racine, 2006. "Nonparametric Econometrics: Theory and Practice," Economics Books, Princeton University Press, Princeton University Press, edition 1, volume 1, number 8355.
- Duclos, Jean-Yves & Sahn, David & Younger, Stephen D., 2001.
"Robust Multidimensional Poverty Comparisons,"
Cahiers de recherche, UniversitÃ© Laval - DÃ©partement d'Ã©conomique
0115, Université Laval - Département d'économique.
- Koen Decancq & María Ana Lugo, 2013.
"Weights in Multidimensional Indices of Wellbeing: An Overview,"
Econometric Reviews, Taylor & Francis Journals,
Taylor & Francis Journals, vol. 32(1), pages 7-34, January.
- Koen DECANCQ & María Ana LUGO, 2010. "Weights in multidimensional indices of well-being: an overview," Center for Economic Studies - Discussion papers, Katholieke Universiteit Leuven, Centrum voor Economische StudiÃ«n ces10.06, Katholieke Universiteit Leuven, Centrum voor Economische Studiën.
- DECANCQ, Koen & LUGO, Maria Ana, . "Weights in multidimensional indices of wellbeing: an overview," CORE Discussion Papers RP, UniversitÃ© catholique de Louvain, Center for Operations Research and Econometrics (CORE) -2493, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Bourguignon, F. & Chakravarty, S.R., 1998.
"The Measurement of Multidimensional Poverty,"
DELTA Working Papers, DELTA (Ecole normale supÃ©rieure)
98-12, DELTA (Ecole normale supérieure).
- Maasoumi, Esfandiar, 1986. "The Measurement and Decomposition of Multi-dimensional Inequality," Econometrica, Econometric Society, Econometric Society, vol. 54(4), pages 991-97, July.
- Fleurbaey,Marc & Maniquet,François, 2011.
"A Theory of Fairness and Social Welfare,"
Cambridge Books, Cambridge University Press,
Cambridge University Press, number 9780521887427.
- Maasoumi, Esfandiar & Lugo, Maria, 2006.
"The Information Basis of Multivariate Poverty Assessments,"
Departmental Working Papers, Southern Methodist University, Department of Economics
0603, Southern Methodist University, Department of Economics.
- Esfandiar Maasoumi & Maria Ana Lugo, 2008. "The Information Basis of Multivariate Poverty Assessments," Emory Economics, Department of Economics, Emory University (Atlanta) 0804, Department of Economics, Emory University (Atlanta).
- Duclos, Jean-Yves & Sahn, David E. & Younger, Stephen D., 2011.
"Partial multidimensional inequality orderings,"
Journal of Public Economics, Elsevier,
Elsevier, vol. 95(3-4), pages 225-238, April.
- Li, Qi & Racine, Jeffrey S, 2008. "Nonparametric Estimation of Conditional CDF and Quantile Functions With Mixed Categorical and Continuous Data," Journal of Business & Economic Statistics, American Statistical Association, American Statistical Association, vol. 26, pages 423-434.
- Tristen Hayfield & Jeffrey S. Racine, . "Nonparametric Econometrics: The np Package," Journal of Statistical Software, American Statistical Association, American Statistical Association, vol. 27(i05).
- Maasoumi, Esfandiar, 1989. "Continuously distributed attributes and measures of multivariate inequality," Journal of Econometrics, Elsevier, Elsevier, vol. 42(1), pages 131-144, September.
- Atkinson, Anthony B & Bourguignon, Francois, 1982. "The Comparison of Multi-Dimensioned Distributions of Economic Status," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 49(2), pages 183-201, April.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.