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Ordinal Welfare Comparisons with Multiple Discrete Indicators: A First Order Dominance Approach and Application to Child Poverty

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  • Channing Arndt
  • Roberta Distante
  • Azhar Hussain
  • Lars Peter Østerdal
  • Pham Lan Huong
  • Maimuna Ibraimo

Abstract

We develop an approach for making welfare comparisons between populations with multidimensional discrete well-being indicators observed at the micro level. The approach is rooted in the concept of multidimensional first order dominance. It assumes that, for each indicator, the levels can be ranked ordinally from worse to better, however no assumptions are made about relative importance of any dimension nor about complementarity/substitutability relationships between dimensions.

Suggested Citation

  • Channing Arndt & Roberta Distante & Azhar Hussain & Lars Peter Østerdal & Pham Lan Huong & Maimuna Ibraimo, 2012. "Ordinal Welfare Comparisons with Multiple Discrete Indicators: A First Order Dominance Approach and Application to Child Poverty," WIDER Working Paper Series wp-2012-036, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2012-036
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    Keywords

    Household survey; Microeconomics; Population; Poverty measurement; Public welfare;
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