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Multidimensional Poverty Measures from an Information Theory Perspective

Author

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  • Maria Ana Lugo

    () (University of Oxford)

  • Esfandiar Maasoumi

    (Southern Methodist University)

Abstract

This paper proposes to use an information theory approach to the design of multidimensional poverty indices. Traditional monetary approaches to poverty rely on the strong assumption that all relevant attributes of well-being are perfectly substitutable. Based on the idea of the essentiality of some attributes, scholars have recently suggested multidimensional poverty indices where the existence of a trade-off between attributes is relevant only for individuals who are below a poverty threshold in all of them (Bourguignon and Chakravarty 2003, Tsui 2002). The present paper proposes a method which encompasses both approaches and, moreover, it opens the door to an intermediate position which allows, to a certain extent, for substitution of attributes even in the case in which one or more (but not all) dimensions are above the set threshold. An application using individual well-being data from Indonesian households in 2000 is presented in order to compare the results under the different approaches.

Suggested Citation

  • Maria Ana Lugo & Esfandiar Maasoumi, 2008. "Multidimensional Poverty Measures from an Information Theory Perspective," Working Papers 85, ECINEQ, Society for the Study of Economic Inequality.
  • Handle: RePEc:inq:inqwps:ecineq2008-85
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    Cited by:

    1. Gaël Giraud & Cécile Renouard & Hélène L'Huillier & Raphaële de la Martinière & Camille Sutter, 2012. "Relational Capability: A Multidimensional Approach," Documents de travail du Centre d'Economie de la Sorbonne 12096, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    2. Forsyth, Tim & Evans, Natalie, 2013. "What is autonomous adaption? Resource scarcity and smallholder agency in Thailand," LSE Research Online Documents on Economics 45412, London School of Economics and Political Science, LSE Library.
    3. Joachim Merz & Tim Rathjen, 2014. "Time And Income Poverty: An Interdependent Multidimensional Poverty Approach With German Time Use Diary Data," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(3), pages 450-479, September.
    4. Tania Burchardt & Holly Holder, 2012. "Developing Survey Measures of Inequality of Autonomy in the UK," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 106(1), pages 1-25, March.
    5. Joachim Merz & Tim Rathjen, 2011. "Intensity of Time and Income Interdependent Multidimensional Poverty: Well-Being and Minimum 2DGAP – German Evidence," FFB-Discussionpaper 92, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)), LEUPHANA University Lüneburg.
    6. Jürgen Volkert & Friedrich Schneider, 2011. "The Application of the Capability Approach to High-Income OECD Countries: A Preliminary Survey," CESifo Working Paper Series 3364, CESifo Group Munich.
    7. Alkire, Sabina & Meinzen-Dick, Ruth & Peterman, Amber & Quisumbing, Agnes & Seymour, Greg & Vaz, Ana, 2013. "The Women’s Empowerment in Agriculture Index," World Development, Elsevier, vol. 52(C), pages 71-91.
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    10. Esfandiar Maasoumi & Le Wang, 2013. "The Gender Earnings Gap: Measurement and Analysis," Emory Economics 1305, Department of Economics, Emory University (Atlanta).
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    12. Permanyer, Iñaki, 2014. "Assessing individuals' deprivation in a multidimensional framework," Journal of Development Economics, Elsevier, vol. 109(C), pages 1-16.
    13. Charlotte Bartels & Maximilian Stockhausen, 2017. "Children's Opportunities in Germany – An Application Using Multidimensional Measures," German Economic Review, Verein für Socialpolitik, vol. 18(3), pages 327-376, August.
    14. Belhadj, Besma, 2011. "New fuzzy indices of poverty by distinguishing three levels of poverty," Research in Economics, Elsevier, vol. 65(3), pages 221-231, September.
    15. Joachim Merz & Tim Rathjen, 2011. "Zeit- und Einkommensarmut von Freien Berufen und Unternehmern," FFB-Discussionpaper 89, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)), LEUPHANA University Lüneburg.
    16. Hope, David & Bates, Timothy & Penke, Lars & Gow, Alan J. & Starr, John M. & Deary, Ian J., 2013. "Symmetry of the face in old age reflects childhood social status," Economics & Human Biology, Elsevier, vol. 11(2), pages 236-244.
    17. Victor, Bart & Fischer, Edward F. & Cooil, Bruce & Vergara, Alfredo & Mukolo, Abraham & Blevins, Meridith, 2013. "Frustrated Freedom: The Effects of Agency and Wealth on Wellbeing in Rural Mozambique," World Development, Elsevier, vol. 47(C), pages 30-41.

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    Keywords

    Multidimensional Poverty; Information Theory;

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • I10 - Health, Education, and Welfare - - Health - - - General
    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation

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