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

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. We also introduce an efficient algorithm for determining dominance and employ a bootstrap approach that permits cardinal rankings of populations. These approaches are applied to household survey data from Vietnam and Mozambique.

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  • Arndt, Channing & Distante, Roberta & Hussain, M. Azhar & Østerdal, Lars Peter & Huong, Pham Lan & Ibraimo, Maimuna, 2012. "Ordinal Welfare Comparisons with Multiple Discrete Indicators: A First Order Dominance Approach and Application to Child Poverty," World Development, Elsevier, vol. 40(11), pages 2290-2301.
  • Handle: RePEc:eee:wdevel:v:40:y:2012:i:11:p:2290-2301
    DOI: 10.1016/j.worlddev.2012.03.010
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    1. Keetie Roelen & Franziska Gassmann & Chris Neubourg, 2010. "Child Poverty in Vietnam: Providing Insights Using a Country-Specific and Multidimensional Model," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 98(1), pages 129-145, August.
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    Cited by:

    1. Range, Troels Martin & Østerdal, Lars Peter, 2013. "Checking bivariate first order dominance," Discussion Papers of Business and Economics 9/2013, University of Southern Denmark, Department of Business and Economics.
    2. Channing Arndt & Vincent Leyaro & Kristi Mahrt, 2014. "Multi-dimensional poverty analysis for Tanzania: First order dominance approach with discrete indicators," WIDER Working Paper Series 146, World Institute for Development Economic Research (UNU-WIDER).
    3. M. Azhar Hussain, 2016. "EU Country Rankings’ Sensitivity to the Choice of Welfare Indicators," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 125(1), pages 1-17, January.
    4. Gottschalk, Tina & Range, Troels Martin & Sudhölter, Peter & Østerdal, Lars Peter, 2015. "Decomposing bivariate dominance for social welfare comparisons," Discussion Papers of Business and Economics 12/2015, University of Southern Denmark, Department of Business and Economics.
    5. Malokele Nanivazo, 2015. "First Order Dominance Analysis: Child Wellbeing in the Democratic Republic of Congo," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 122(1), pages 235-255, May.
    6. Udaya S. Mishra & Vachaspati Shukla, 2016. "Welfare Comparisons with Multidimensional Well-Being Indicators: An Indian Illustration," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 129(2), pages 505-525, November.
    7. Shinkai, Naoko, 2016. "Examination of Poverty in Northern Mozambique: A Comparison of Social and Economic Dimensions," Working Papers 133, JICA Research Institute.
    8. Kristi Mahrt & Gibson Masumbu, 2015. "Estimating multidimensional poverty in Zambia," WIDER Working Paper Series 137, World Institute for Development Economic Research (UNU-WIDER).
    9. Channing Arndt & Azhar M. Hussain & Vincenzo Salvucci & Finn Tarp & Lars Peter Østerdal, 2016. "Poverty Mapping Based on First‐Order Dominance with an Example from Mozambique," Journal of International Development, John Wiley & Sons, Ltd., vol. 28(1), pages 3-21, January.
    10. Channing Arndt & Kristi Mahrt & M. Azhar Hussain & Finn Tarp, 2017. "A human rights-consistent approach to multidimensional welfare measurement applied to sub-Saharan Africa," WIDER Working Paper Series 076, World Institute for Development Economic Research (UNU-WIDER).
    11. Nanivazo, Malokele, 2014. "First order dominance analysis: Child wellbeing in the Democratic Republic of Congo," WIDER Working Paper Series 025, World Institute for Development Economic Research (UNU-WIDER).
    12. repec:spr:soinre:v:136:y:2018:i:1:d:10.1007_s11205-016-1541-9 is not listed on IDEAS
    13. Christoffer Sonne-Schmidt & Finn Tarp & Lars Peter Østerdal, 2016. "Ordinal Bivariate Inequality: Concepts and Application to Child Deprivation in Mozambique," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 62(3), pages 559-573, September.
    14. Udaya S. Mishra & Vachaspati Shukla, 2015. "Welfare Comparisons with Multidimensional Well-Being Indicators: An Indian Illustration," Working Papers id:7095, eSocialSciences.
    15. Masumbu, Gibson & Mahrt, Kristi, 2014. "Multidimensional welfare in districts of Zambia: A first order dominance approach," WIDER Working Paper Series 137, World Institute for Development Economic Research (UNU-WIDER).
    16. Ajakaiye, Olu & Jerome, Afeikhena T. & Olaniyan, Olanrewaju & Mahrt, Kristi & Alaba, Olufunke A., 2014. "Multidimensional poverty in Nigeria: First order dominance approach," WIDER Working Paper Series 143, World Institute for Development Economic Research (UNU-WIDER).
    17. M. Azhar Hussain & Mette Møller Jørgensen & Lars Peter Østerdal, 2016. "Refining Population Health Comparisons: A Multidimensional First Order Dominance Approach," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 129(2), pages 739-759, November.
    18. Fatiha Bennia & Nicolas Gravel, 2016. "Is the Distribution of Cardiovascular Risks Really Improving ? A Robust Analysis for France," Working Papers halshs-01321838, HAL.
    19. Sonne-Schmidt, Christoffer & Tarp, Finn & Peter, Lars, 2011. "Ordinal multidimensional inequality: theory and application to the 2x2 case," MPRA Paper 72838, University Library of Munich, Germany.
    20. Sonne-Schmidt, Christoffer & Tarp, Finn & Østerdal, Lars Peter, 2013. "Ordinal Multidimensional Inequality," WIDER Working Paper Series 097, World Institute for Development Economic Research (UNU-WIDER).
    21. Martyna Kobus & Radoslaw Kurek, 2017. "Copula-based measurement of interdependence for discrete distributions," Working Papers 431, ECINEQ, Society for the Study of Economic Inequality.

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