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A poverty outreach index and its application to microfinance

Author

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  • Julia Paxton

    () (Ohio University)

Abstract

The Foster, Greer, and Thorbecke poverty index is modified to a poverty outreach measure that incorporates both depth of outreach and scale. In an application to microfinance institutions, the use of this type of poverty outreach measure rejects the common notion that there is a necessary trade-off between client outreach and institutional sustainability. Banks and credit unions are found to have greater poverty outreach than smaller, subsidized non-governmental organizations that exclusively target the poor.

Suggested Citation

  • Julia Paxton, 2003. "A poverty outreach index and its application to microfinance," Economics Bulletin, AccessEcon, vol. 9(2), pages 1-10.
  • Handle: RePEc:ebl:ecbull:eb-03i30002
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    References listed on IDEAS

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    1. Kundu, Amitabh & Smith, Tony E, 1983. "An Impossibility Theorem on Poverty Indices," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 24(2), pages 423-434, June.
    2. Zheng, Buhong, 1997. " Aggregate Poverty Measures," Journal of Economic Surveys, Wiley Blackwell, vol. 11(2), pages 123-162, June.
    3. Satya Chakravarty & Ravi Kanbur & Diganta Mukherjee, 2006. "Population growth and poverty measurement," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 26(3), pages 471-483, June.
    4. Conning, Jonathan, 1999. "Outreach, sustainability and leverage in monitored and peer-monitored lending," Journal of Development Economics, Elsevier, vol. 60(1), pages 51-77, October.
    5. Atkinson, A B, 1987. "On the Measurement of Poverty," Econometrica, Econometric Society, vol. 55(4), pages 749-764, July.
    6. Sen, Amartya, 1973. "On Economic Inequality," OUP Catalogue, Oxford University Press, number 9780198281931.
    7. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-766, May.
    8. Navajas, Sergio & Schreiner, Mark & Meyer, Richard L. & Gonzalez-vega, Claudio & Rodriguez-meza, Jorge, 2000. "Microcredit and the Poorest of the Poor: Theory and Evidence from Bolivia," World Development, Elsevier, vol. 28(2), pages 333-346, February.
    9. Morduch, Jonathan, 1998. "Poverty, economic growth, and average exit time," Economics Letters, Elsevier, vol. 59(3), pages 385-390, June.
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    Citations

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    Cited by:

    1. Hassoun, Nicole & S. Subramanian, 2010. "On Some Problems of Variable Population Poverty Comparisons," WIDER Working Paper Series 071, World Institute for Development Economic Research (UNU-WIDER).
    2. repec:spr:decisn:v:44:y:2017:i:3:d:10.1007_s40622-017-0148-6 is not listed on IDEAS
    3. Wijesiri, Mahinda & Yaron, Jacob & Meoli, Michele, 2015. "Performance of microfinance institutions in achieving the poverty outreach and financial sustainability: When age and size matter?," MPRA Paper 69821, University Library of Munich, Germany.
    4. Louis, Philippe & Seret, Alex & Baesens, Bart, 2013. "Financial Efficiency and Social Impact of Microfinance Institutions Using Self-Organizing Maps," World Development, Elsevier, vol. 46(C), pages 197-210.
    5. repec:eee:mulfin:v:40:y:2017:i:c:p:63-76 is not listed on IDEAS
    6. Subramanian, Sreenivasan, 2012. "Variable Populations and the Measurement of Poverty and Inequality," WIDER Working Paper Series 053, World Institute for Development Economic Research (UNU-WIDER).
    7. Hassoun, Nicole & Subramanian, S., 2012. "An aspect of variable population poverty comparisons," Journal of Development Economics, Elsevier, vol. 98(2), pages 238-241.
    8. repec:spr:qualqt:v:52:y:2018:i:3:d:10.1007_s11135-017-0528-1 is not listed on IDEAS

    More about this item

    Keywords

    microfinance;

    JEL classification:

    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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