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Poverty, Relative to the Ability to Eradicate It: An Index of Poverty Reduction Failure

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  • Kanbur, Ravi
  • Mukherjee, Diganta

Abstract

In this note we approach the question of relative poverty from a different angle. Fixing the poverty line, we ask: What is the extent of poverty relative to the resources available in the society to eradicate it? We argue that the same level of poverty is “worse” if the resources available to address it are greater. We characterize a class of indices that measure Poverty Reduction Failure and provide an empirical illustration of their suitability using data for 94 country observations in 2001.

Suggested Citation

  • Kanbur, Ravi & Mukherjee, Diganta, 2007. "Poverty, Relative to the Ability to Eradicate It: An Index of Poverty Reduction Failure," Working Papers 126998, Cornell University, Department of Applied Economics and Management.
    • Handle: RePEc:ags:cudawp:126998
    DOI: 10.22004/ag.econ.126998
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    References listed on IDEAS

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    1. Foster, James E & Shorrocks, Anthony F, 1991. "Subgroup Consistent Poverty Indices," Econometrica, Econometric Society, vol. 59(3), pages 687-709, May.
    2. Shaohua Chen & Martin Ravallion, 2004. "How Have the World's Poorest Fared since the Early 1980s?," The World Bank Research Observer, World Bank, vol. 19(2), pages 141-169.
    3. Foster, James E, 1998. "Absolute versus Relative Poverty," American Economic Review, American Economic Association, vol. 88(2), pages 335-341, May.
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    Citations

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    Cited by:

    1. Ravallion Martin, 2010. "Do Poorer Countries Have Less Capacity for Redistribution?," Journal of Globalization and Development, De Gruyter, vol. 1(2), pages 1-31, December.
    2. Jo Thori Lind & Karl Moene, 2011. "Miserly Developments," Journal of Development Studies, Taylor & Francis Journals, vol. 47(9), pages 1332-1352, June.
    3. Chakravarty, Satya R. & D'Ambrosio, Conchita, 2013. "An axiomatic approach to the measurement of poverty reduction failure," Economic Modelling, Elsevier, vol. 35(C), pages 874-880.
    4. Sumner, Andy, 2012. "Where Do The Poor Live?," World Development, Elsevier, vol. 40(5), pages 865-877.
    5. Kanbur, Ravi, 2018. "On The Volume of Redistribution: Across Income Levels and Across Groups," CEPR Discussion Papers 12816, C.E.P.R. Discussion Papers.
    6. Permanyer, Iñaki, 2014. "Assessing individuals' deprivation in a multidimensional framework," Journal of Development Economics, Elsevier, vol. 109(C), pages 1-16.
    7. Alessandra Michelangeli & Eugenio Peluso & Alain Trannoy, 2011. "Detecting a change in wealth concentration without the knowledge of the wealth distribution," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 9(3), pages 373-391, September.
    8. Andy Sumner, 2013. "Global Poverty, Aid, and Middle-Income Countries: Are the Country Classifications Moribund or is Global Poverty in the Process of 'Nationalizing'?," WIDER Working Paper Series wp-2013-062, World Institute for Development Economic Research (UNU-WIDER).
    9. Sumner, Andy, 2013. "Global Poverty, Aid, and Middle-Income Countries: Are the Country Classifications Moribund or is Global Poverty in the Process of 'Nationalizing'?," WIDER Working Paper Series 062, World Institute for Development Economic Research (UNU-WIDER).
    10. Merwan Engineer & Nilanjana Roy & Sari Fink, 2010. "“Healthy” Human Development Indices," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 99(1), pages 61-80, October.
    11. Andy Sumner, 2012. "Where Will the World’s Poor Live? An Update on Global Poverty and the New Bottom Billion," Working Papers 305, Center for Global Development.
    12. Diganta Mukherjee, 2008. "Poverty measures incorporating variable rate of alleviation due to population growth," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 31(1), pages 97-107, June.

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    Keywords

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    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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