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Duration and Multidimensionality in Poverty Measurement

  • Aaron Nicholas

    ()

  • Ranjan Ray
  • Kompal Sinha

    ()

This paper unites two strands of the literature on subgroup decomposable poverty measurement originating from Foster, Greer and Thorbecke (1984) by incorporating information on both multiple dimensions and multiple periods. This generalises the Alkire and Foster (2011a) measure into a dynamic setting. In doing so, it introduces two variants of the ‘transfer’ axiom: one that gives increasing weight to individuals whose deprivations are concentrated as repeated dimensions in a specific period (what we term ‘breadth’) versus one that gives increasing weight to individuals whose deprivations are concentrated as repeated periods in a specific dimension (‘length’). The measure is able to differentiate between both aspects of poverty and consequently allows the assignment of different weights to each aspect. This makes it well suited to make comparison across subgroups when individual longitudinal data is available. We apply the proposed measure to longitudinal data from China where we compare differences in the estimate of poverty relative to existing measures.

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File URL: http://www.deakin.edu.au/buslaw/aef/workingpapers/papers/2013_9.pdf
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Paper provided by Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance in its series Economics Series with number 2013_9.

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Date of creation: 25 Nov 2013
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Handle: RePEc:dkn:econwp:eco_2013_9
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Web page: http://www.deakin.edu.au/buslaw/aef/index.php

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  1. Carlos Gradín & Coral Del Río & Olga Cantó, 2012. "Measuring Poverty Accounting For Time," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 58(2), pages 330-354, 06.
  2. Sabina Alkire & James Foster, 2011. "Understandings and misunderstandings of multidimensional poverty measurement," Journal of Economic Inequality, Springer, vol. 9(2), pages 289-314, June.
  3. BOSSERT, Walter & CHAKRAVARTY, Satya R. & D’AMBROSIO, Conchita, 2008. "Poverty and Time," Cahiers de recherche 05-2008, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
    • Bossert, Walter & Chakravarty, Satya R. & d’Ambrosio, Conchita, 2010. "Poverty and Time," Working Paper Series wp2010-74, World Institute for Development Economic Research (UNU-WIDER).
    • Walter Bossert & Satya R. Chakravarty & Conchita D’Ambrosio, 2008. "Poverty and Time," Working Papers 87, ECINEQ, Society for the Study of Economic Inequality.
    • BOSSERT, Walter & CHAKRAVARTY, Satya R. & D’AMBROSIO, Conchita, 2008. "Poverty and Time," Cahiers de recherche 2008-05, Universite de Montreal, Departement de sciences economiques.
  4. Kai-yuen Tsui, 2002. "Multidimensional poverty indices," Social Choice and Welfare, Springer, vol. 19(1), pages 69-93.
  5. Satya R. Chakravarty & Conchita D'Ambrosio, 2006. "The Measurement Of Social Exclusion," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 52(3), pages 377-398, 09.
  6. Duclos, Jean-Yves & Araar, Abdelkrim & Giles, John, 2010. "Chronic and transient poverty: Measurement and estimation, with evidence from China," Journal of Development Economics, Elsevier, vol. 91(2), pages 266-277, March.
  7. Alkire, Sabina & Foster, James, 2011. "Counting and multidimensional poverty measurement," Journal of Public Economics, Elsevier, vol. 95(7), pages 476-487.
  8. Hojman, Daniel Andres & Kast, Felipe, 2009. "On the Measurement of Poverty Dynamics," Scholarly Articles 4449107, Harvard Kennedy School of Government.
  9. BOSSERT, Walter & D'AMBROSIO, Conchita & PERAGINE, Vito, 2004. "Deprivation and Social Exclusion," Cahiers de recherche 2004-01, Universite de Montreal, Departement de sciences economiques.
  10. Aaron Nicholas & Ranjan Ray, 2012. "Duration and Persistence in Multidimensional Deprivation: Methodology and Australian Application," The Economic Record, The Economic Society of Australia, vol. 88(280), pages 106-126, 03.
  11. Cesar Calvo & Stefan Dercon, 2007. "Chronic Poverty and All That: The Measurement of Poverty over Time," Economics Series Working Papers WPS/2007-04, University of Oxford, Department of Economics.
  12. Ray, Ranjan & Mishra, Ankita, 2012. "Multi-dimensional deprivation in the awakening giants: A comparison of China and India on micro data," Journal of Asian Economics, Elsevier, vol. 23(4), pages 454-465.
  13. Hoy, Michael & Zheng, Buhong, 2011. "Measuring lifetime poverty," Journal of Economic Theory, Elsevier, vol. 146(6), pages 2544-2562.
  14. Sen, Amartya K, 1976. "Poverty: An Ordinal Approach to Measurement," Econometrica, Econometric Society, vol. 44(2), pages 219-31, March.
  15. Kahneman, Daniel & Tversky, Amos, 1979. "Prospect Theory: An Analysis of Decision under Risk," Econometrica, Econometric Society, vol. 47(2), pages 263-91, March.
  16. François Bourguignon & Satya Chakravarty, 2003. "The Measurement of Multidimensional Poverty," Journal of Economic Inequality, Springer, vol. 1(1), pages 25-49, April.
  17. A. Atkinson, 2003. "Multidimensional Deprivation: Contrasting Social Welfare and Counting Approaches," Journal of Economic Inequality, Springer, vol. 1(1), pages 51-65, April.
  18. Gaurav Datt, 2013. "Making every dimension count: multidimensional poverty without the “dual cut offâ€," Monash Economics Working Papers 32-13, Monash University, Department of Economics.
  19. Walter Bossert & Satya R. Chakravarty & Conchita D'Ambrosio, 2013. "Multidimensional Poverty and Material Deprivation with Discrete Data," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 59(1), pages 29-43, 03.
  20. Manimay Sengupta, 2009. "Unemployment duration and the measurement of unemployment," Journal of Economic Inequality, Springer, vol. 7(3), pages 273-294, September.
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