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Revisiting the Normalization Axiom in Poverty Measurement

In: Social Values and Social Indicators

Author

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  • S. Subramanian

    (Independent Scholar)

Abstract

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.

Suggested Citation

  • S. Subramanian, 2021. "Revisiting the Normalization Axiom in Poverty Measurement," Themes in Economics, in: Social Values and Social Indicators, chapter 0, pages 125-138, Springer.
    • Handle: RePEc:spr:thechp:978-981-16-0428-7_11
    DOI: 10.1007/978-981-16-0428-7_11
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