Poverty Measurement with Ordinal Data
The Foster, Greer, Thorbecke (1984) class nests several of the most widely used mea- sures in theoretical and empirical work on economic poverty. Use of this general class of measures, however, presupposes a dimension of well-being that, like income, is cardinally measurable. Responding to recent interest in dimensions of well-being where achievements are recorded on an ordinal scale, this paper develops counterparts to the popular FGT measures that are still meaningful when applied to ordinal data. The resulting ordinal FGT measures retain the simplicity of the classical FGT measures and also many of their desirable features, including additive decomposability. This paper also develops ordinal analogues of the core axioms from the literature on economic poverty, and demonstrates that the ordinal FGT measures indeed satisfy these core axioms. Moreover, new domi- nance conditions, which allow for poverty rankings that are robust with respect to the choice of poverty line, are established. Lastly, the ordinal FGT measures are illustrated using self-reported data on health status in Canada and the United States.
|Date of creation:||Jul 2011|
|Contact details of provider:|| Web page: http://www.gwu.edu/~iiep/|
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Gaston Yalonetzky, 2013. "Stochastic Dominance with Ordinal Variables: Conditions and a Test," Econometric Reviews, Taylor & Francis Journals, vol. 32(1), pages 126-163, January.
- John C. Harsanyi, 1953. "Cardinal Utility in Welfare Economics and in the Theory of Risk-taking," Journal of Political Economy, University of Chicago Press, vol. 61, pages 434-434.
- Zheng, Buhong, 1997. " Aggregate Poverty Measures," Journal of Economic Surveys, Wiley Blackwell, vol. 11(2), pages 123-162, June.
- David (David Patrick) Madden, 2008.
"Ordinal and cardinal measures of health inequality : an empirical comparison,"
200813, School of Economics, University College Dublin.
- David Madden, 2010. "Ordinal and cardinal measures of health inequality: an empirical comparison," Health Economics, John Wiley & Sons, Ltd., vol. 19(2), pages 243-250.
- Madden, D, 2008. "Ordinal and Cardinal Measures of Health Inequality: An Empirical Comparison," Health, Econometrics and Data Group (HEDG) Working Papers 08/09, HEDG, c/o Department of Economics, University of York.
- Abul Naga, Ramses H. & Yalcin, Tarik, 2008.
"Inequality measurement for ordered response health data,"
Journal of Health Economics,
Elsevier, vol. 27(6), pages 1614-1625, December.
- Ramses H. Abul Naga & Tarik Yalcin, 2007. "Inequality Measurement forOrdered Response Health Data," STICERD - Distributional Analysis Research Programme Papers 92, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
- Ramses H. Abul Naga & Tarik Yalcin, 2007. "Inequality measurement for ordered response health data," LSE Research Online Documents on Economics 6538, London School of Economics and Political Science, LSE Library.
- Ravallion, Martin, 1994. "Measuring Social Welfare with and without Poverty Lines," American Economic Review, American Economic Association, vol. 84(2), pages 359-364, May.
- Spector, Yishay & Leshno, Moshe & Horin, Moshe Ben, 1996. "Stochastic dominance in an ordinal world," European Journal of Operational Research, Elsevier, vol. 93(3), pages 620-627, September.
- Sen, Amartya K, 1976. "Poverty: An Ordinal Approach to Measurement," Econometrica, Econometric Society, vol. 44(2), pages 219-231, March.
- Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
- Allison, R. Andrew & Foster, James E., 2004. "Measuring health inequality using qualitative data," Journal of Health Economics, Elsevier, vol. 23(3), pages 505-524, May.
When requesting a correction, please mention this item's handle: RePEc:gwi:wpaper:2011-14. 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: (Kyle Renner)
If references are entirely missing, you can add them using this form.