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Poverty Measurement: An Index Related to a Theil Measure of Inequality

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  • Blackburn, McKinley L

Abstract

A major problem that arises in measuring poverty is the adequate expression, in a poverty index, of the information from the incomes of individuals below the poverty line. This article evaluates several poverty indexes on the basis of their ability to satisfy five properties desirable for a poverty index. The only index that satisfies all five properties is one related to a Theil measure of inequality. Simulations show that this index and an index related to the coefficient of variation provide appropriate ranks for the desirability of various algorithms for transferring income to the poor.

Suggested Citation

  • Blackburn, McKinley L, 1989. "Poverty Measurement: An Index Related to a Theil Measure of Inequality," Journal of Business & Economic Statistics, American Statistical Association, vol. 7(4), pages 475-481, October.
  • Handle: RePEc:bes:jnlbes:v:7:y:1989:i:4:p:475-81
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    Cited by:

    1. Joan R Rodgers & John L Rodgers, 1991. "The Measurement of Chronic and Transitory Poverty: with Application to the United States," Economics Working Paper Archive wp_55, Levy Economics Institute.
    2. Walter Bossert & Susumu Cato & Kohei Kamaga, 2022. "Generalized Poverty-gap Orderings," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 164(1), pages 189-215, November.
    3. Tomson Ogwang, 2022. "The regression approach to the measurement and decomposition of the multidimensional Watts poverty index," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 20(4), pages 951-973, December.

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