Revisiting the Normalization Axiom in Poverty Measurement
The ‘normalization’ axiom associated with Sen’s poverty index – and this, indeed, holds for most extant measures of poverty – entails an uncomfortable implication when we adopt a strong, or inclusive, definition of the poor. This paper suggests that we may not always be at liberty to adopt a weak definition. The available alternative then is to change the form of the poverty measure. Accordingly, a modification of his normalization axiom which leads to a variant of Sen’s index, together with a variant also of the Foster-Greer-Thorbecke poverty measures, is advanced and discussed. The derivation of the new normalization axiom benefits from Basu’s decomposition of the Sen axiom.
Volume (Year): 22 (2009)
Issue (Month): 2 (Autumn)
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0751, University of Tampere, School of Management, Economics.
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- Takayama, Noriyuki, 1979. "Poverty, Income Inequality, and Their Measures: Professor Sen's Axiomatic Approach Reconsidered," Econometrica, Econometric Society, vol. 47(3), pages 747-59, May.
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