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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. 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.
    • 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).
    • 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.
  2. Cesar Calvo & Stefan Dercon, 2007. "Chronic Poverty and All That: The Measurement of Poverty over Time," CSAE Working Paper Series 2007-04, Centre for the Study of African Economies, University of Oxford.
  3. Aaron Nicholas & Ranjan Ray, 2011. "Duration and Persistence in Multidimensional Deprivation: Methodology and Australian Application," Monash Economics Working Papers 10-11, Monash University, Department of Economics.
  4. Jean-Yves Duclos & Abdelkrim Araar & John Giles, 2006. "Chronic and Transient Poverty: Measurement and Estimation, with Evidence from China," Cahiers de recherche 0611, CIRPEE.
  5. James Foster & Sabina Alkire, 2011. "Understandings and Misunderstandings of Multidimensional Poverty Measurement," Working Papers 2011-18, The George Washington University, Institute for International Economic Policy.
  6. Hojman, Daniel & Kast, Felipe, 2009. "On the Measurement of Poverty Dynamics," Working Paper Series rwp09-035, Harvard University, John F. Kennedy School of Government.
  7. Carlos Gradín & Coral del Río & Olga Cantó, 2010. "Measuring poverty accounting for time," Working Papers 1005, Universidade de Vigo, Departamento de Economía Aplicada.
  8. Bourguignon, F. & Chakravarty, S.R., 1998. "The Measurement of Multidimensional Poverty," DELTA Working Papers 98-12, DELTA (Ecole normale supérieure).
  9. 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.
  10. Amos Tversky & Daniel Kahneman, 1979. "Prospect Theory: An Analysis of Decision under Risk," Levine's Working Paper Archive 7656, David K. Levine.
  11. 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.
  12. Michael Hoy & Buhong Zheng, 2008. "Measuring Lifetime Poverty," Working Papers 0814, University of Guelph, Department of Economics and Finance.
  13. BOSSERT, Walter & D'AMBROSIO, Conchita & PERAGINE, Vito, 2004. "Deprivation and Social Exclusion," Cahiers de recherche 02-2004, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
  14. Sen, Amartya K, 1976. "Poverty: An Ordinal Approach to Measurement," Econometrica, Econometric Society, vol. 44(2), pages 219-31, March.
  15. 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.
  16. Kai-yuen Tsui, 2002. "Multidimensional poverty indices," Social Choice and Welfare, Springer, vol. 19(1), pages 69-93.
  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. Alkire, Sabina & Foster, James, 2011. "Counting and multidimensional poverty measurement," Journal of Public Economics, Elsevier, vol. 95(7), pages 476-487.
  19. Manimay Sengupta, 2009. "Unemployment duration and the measurement of unemployment," Journal of Economic Inequality, Springer, vol. 7(3), pages 273-294, September.
  20. 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.
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