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Multidimensional index: A Note

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  • Srijit Mishra

    (Indira Gandhi Institute of Development Research)

Abstract

This paper identifies the problem of information loss in computation of multidimensional index on account of cut-offs between and within dimensions. The former refers to the ?? cutoff across dimensions on account of headcount fetish and the latter points to the restrictions on normalised deprivation score on account of deprivation line as benchmark. One also observes information loss when available data is converted to binary form. An empirical exercise substantiates the points. We suggest that the computation of multidimensional index in deprivation (poverty) and attainment (empowerment) should do away with these information loss by not censoring, by replacing deprivation line with maxima, where appropriate, as benchmark for computing normalised deprivation score, and by not converting available data to binary form.

Suggested Citation

  • Srijit Mishra, 2024. "Multidimensional index: A Note," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2024-007, Indira Gandhi Institute of Development Research, Mumbai, India.
    • Handle: RePEc:ind:igiwpp:2024-007
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    File URL: http://www.igidr.ac.in/pdf/publication/WP-2024-007.pdf
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    References listed on IDEAS

    as
    1. Alkire, Sabina & Foster, James, 2011. "Counting and multidimensional poverty measurement," Journal of Public Economics, Elsevier, vol. 95(7-8), pages 476-487, August.
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    More about this item

    Keywords

    Attainment; Censoring; Deprivation; Headcount fetish; Information loss; Multidimensional index;
    All these keywords.

    JEL classification:

    • C38 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Classification Methdos; Cluster Analysis; Principal Components; Factor Analysis
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • H89 - Public Economics - - Miscellaneous Issues - - - Other
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification
    • Z18 - Other Special Topics - - Cultural Economics - - - Public Policy

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