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A new technique to measure poverty using the theory of fuzzy logic

Author

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  • Alberto J. Hurtado

    () (Universidad de Los Andes. Núcleo Universitario Liria, Edif. G “Leocadio Hontoria”, 3er piso, Instituto de Investigaciones Económicas y Sociales (IIES). Grupo de Gestión Económica en la Incertidumbre (GEIN).)

  • Jaime Tinto Arandes

    () (Universidad de Los Andes. Núcleo Universitario Liria, Edif. G “Leocadio Hontoria”, 3er piso, Instituto de Investigaciones Económicas y Sociales (IIES). Grupo de Gestión Económica en la Incertidumbre (GEIN).)

Abstract

This paper presents a new methodology to study poverty in Venezuela using the tools of fuzzy logic. Through fuzzy logic the authors were able to come up with the design and use of poverty lines, instead of the traditional lines, to identify households in poverty in the various sectors of the city of Merida. For this purpose, the following poverty related variables were identified: food, utilities, clothing and footwear, education services, housing, health services, recreation services, transportation, and personal services. These variables allowed the inclusion of a large number of households in the study. The instruments of fuzzy logic for the treatment of fuzzy and uncertain information allow taking subjective knowledge about a real problem. This study led to discover the remarkable aspects of poverty in households and has the potential of contribuiting to the process of local decision making.

Suggested Citation

  • Alberto J. Hurtado & Jaime Tinto Arandes, 2009. "A new technique to measure poverty using the theory of fuzzy logic," Economía, Instituto de Investigaciones Económicas y Sociales (IIES). Facultad de Ciencias Económicas y Sociales. Universidad de Los Andes. Mérida, Venezuela, vol. 34(28), pages 213-237, July-Dece.
  • Handle: RePEc:ula:econom:v:34:y:2009:i:28:p:213-237
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    Keywords

    Poverty; fuzzy logic; poverty threshold.;

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • C45 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Neural Networks and Related Topics

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