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Poverty Measurement in the Presence of a ‘Group-Affiliation’ Externality

In: Social Values and Social Indicators

Author

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  • S. Subramanian

    (Independent Scholar)

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 which 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, 2021. "Poverty Measurement in the Presence of a ‘Group-Affiliation’ Externality," Themes in Economics, in: Social Values and Social Indicators, chapter 0, pages 111-123, Springer.
    • Handle: RePEc:spr:thechp:978-981-16-0428-7_10
    DOI: 10.1007/978-981-16-0428-7_10
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