IDEAS home Printed from https://ideas.repec.org/p/diw/diwsop/diw_sp383.html
   My bibliography  Save this paper

A Behaviouristic Approach for Measuring Poverty: The Decomposition Approach ; Empirical Illustrations for Germany 1995-2009

Author

Listed:
  • Jürgen Faik

Abstract

In this paper an alternative approach with regard to poverty measurement is discussed: the so-called decomposition approach. This method differentiates between various social groups in the sense that for each group a separate poverty line is determined. E. g., household size might be a criterion for such a social differentiation. By doing this, the problem of traditional poverty measurement to refer to income-independent equivalence scales is principally avoided. Moreover, the further problem of the traditional method, namely to determinea (general) poverty line as a more or less arbitrary fraction of society's mean welfare level, does not exist, on principle, in the decomposition approach. Present author's own calculations reveal higher poverty levels indicated by this approach compared with the conventional method of measuring (income) poverty. Since it appears to be realistic that some people perform their poverty assessments through a "mixture" of their own group's and overall welfare levels, at a plausible degree of economies of scale (i. e., Buhmann et al.'s · > 0.65) the poverty levels of the decomposition approach can be interpreted as upper limits for the "true" level of poverty, and, conversely, the degree of poverty ascertained by the conventional approach can be seen as a lower limit for "true" poverty.

Suggested Citation

  • Jürgen Faik, 2011. "A Behaviouristic Approach for Measuring Poverty: The Decomposition Approach ; Empirical Illustrations for Germany 1995-2009," SOEPpapers on Multidisciplinary Panel Data Research 383, DIW Berlin, The German Socio-Economic Panel (SOEP).
  • Handle: RePEc:diw:diwsop:diw_sp383
    as

    Download full text from publisher

    File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.373754.de/diw_sp0383.pdf
    Download Restriction: no

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jürgen Faik, 2011. "A New Framework of Measuring Inequality: Variable Equivalence Scales and Group-Specific Well-Being Limits ; Sensitivity Findings for German Personal Income Distribution 1995-2009," SOEPpapers on Multidisciplinary Panel Data Research 401, DIW Berlin, The German Socio-Economic Panel (SOEP).

    More about this item

    Keywords

    Welfare; poverty measurement; decomposition approach; equivalence scales;

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • P46 - Economic Systems - - Other Economic Systems - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:diw:diwsop:diw_sp383. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bibliothek). General contact details of provider: http://edirc.repec.org/data/sodiwde.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.