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Multidimensional Poverty Rankings based on Pareto Principle: A Practical Extension

  • Maki Michinaka
  • Takahiro Ito

This paper proposes a ranking method of multidimensional poverty and extends it aiming to enhance its practical utility. While our original ranking method that assumes non-comparability among different dimensions of poverty succeeds in eliminating some implicit arbitrariness in existing ranking, it also confronts a disadvantage that a non- negligible number of objectives (countries) are ranked at the same level. In order to improve this disadvantage, we propose an extended ranking method, where we allow the data to have a certain range of bandwidth. The introduction of bandwidth improves the usefulness of our ranking in the sense that it decreases the number of countries with the same rank. In addition, a simulation exercise shows that this extension also improves the robustness of the ranking against measurement errors.

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File URL: http://gcoe.ier.hit-u.ac.jp/research/discussion/2008/pdf/gd10-139.pdf
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Paper provided by Institute of Economic Research, Hitotsubashi University in its series Global COE Hi-Stat Discussion Paper Series with number gd10-139.

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Date of creation: May 2010
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Handle: RePEc:hst:ghsdps:gd10-139
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  1. Krishnakumar, Jaya & Ballon, Paola, 2008. "Estimating Basic Capabilities: A Structural Equation Model Applied to Bolivia," World Development, Elsevier, vol. 36(6), pages 992-1010, June.
  2. Dasgupta, Partha & Weale, Martin, 1992. "On measuring the quality of life," World Development, Elsevier, vol. 20(1), pages 119-131, January.
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