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A Proposal of a Synthetic Indicator to Measure Poverty Intensity, With an Application to EU-15 Countries

  • José Javier Núñez-Velázquez

    ()

    (Departamento de Estadística, Estructura Económica y O.E.I. Universidad de Alcalá)

  • Juana Domínguez-Domínguez

    ()

    (Departamento de Estadística, Estructura Económica y O.E.I. Universidad de Alcalá)

This paper deals with the proposal of a synthetic indicator to measure intensity of poverty. So, whereas incidence of poverty can be clearly measured using the headcount ratio indicator, according to Sen (1976) dimensions of poverty, the choice of a better intensity poverty measure is still an open question to resolve. Thus, in this paper, a new procedure to obtain a synthetic indicator from a set of well-performed poverty intensity indices as a start is proposed, using an adaptation of Principal Component Analysis (PCA). Conditions needed to make longitudinal comparisons possible are studied and properties of these synthetic indicators will also be analyzed, connected to TIP curves as well. As an illustration, this paper analyzes the evolution of poverty in the 15 countries of E.U., whose household income data are available through the information contained in the European Community Household Panel (ECPH). This analysis allows static and dynamic comparisons, related to the period from 1993 to 2000. Furthermore, the determination of groups of countries according to their characteristics in poverty will be accomplished.

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File URL: http://www.ecineq.org/milano/WP/ECINEQ2007-81.pdf
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Paper provided by ECINEQ, Society for the Study of Economic Inequality in its series Working Papers with number 81.

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Length: 29 pages
Date of creation: 2007
Date of revision:
Handle: RePEc:inq:inqwps:ecineq2007-81
Contact details of provider: Web page: http://www.ecineq.org
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  1. Santiago Alvarez-Garcia & Juan Prieto-Rodriguez & Rafael Salas, 2003. "The evolution of income inequality in the European Union," Public Economics 0309003, EconWPA.
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