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Poverty Measurement in the Presence of a 'Group-Affiliation' Externality

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  • S. Subramanian

Abstract

This paper considers the implications for poverty measurement of the observed fact that any individual's level of deprivation is a function not only of his own income, but of the general level of prosperity of the group to which he is affiliated. Individual deprivation functions are specialized to a form that reflects this 'group-affiliation' externality, and the resulting poverty measure is studied with respect to its properties, and its implications for poverty rankings. Mainstream approaches to measuring deprivation tend to neglect group-related externalities in favour of a certain thorough-going 'individualism'. This paper is a preliminary attempt at filling this gap.

Suggested Citation

  • S. Subramanian, 2009. "Poverty Measurement in the Presence of a 'Group-Affiliation' Externality," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 10(1), pages 63-76.
  • Handle: RePEc:taf:jhudca:v:10:y:2009:i:1:p:63-76
    DOI: 10.1080/14649880802675168
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