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A New Multiplicative Decomposition For The Foster-Greer-Thorbecke Poverty Indices

Author

Listed:
  • Oihana Aristondo

    () (University of the Basque Country. Spain)

  • Casilda Lasso de la Vega

    () (University of the Basque Country. Spain)

  • Ana Urrutia

    () (University of the Basque Country. Spain)

Abstract

This paper identifies a multiplicative decomposition for the Foster-Greer-Thorbecke poverty indices as a product of the three components which should be involved in every poverty index: the incidence of poverty, measured by the headcount ratio, the intensity of poverty, measured by the aggregate income gap ratio and the inequality among the poor measured by an increasing transformation of the corresponding inequality index of the Generalized Entropy family. Then, taking data from the Spanish Household Budget Surveys (SHB) as a basis we show the advantages and possibilities of this framework in regard to completing and detailing information in studies of poverty over time.

Suggested Citation

  • Oihana Aristondo & Casilda Lasso de la Vega & Ana Urrutia, 2008. "A New Multiplicative Decomposition For The Foster-Greer-Thorbecke Poverty Indices," Working Papers 91, ECINEQ, Society for the Study of Economic Inequality.
  • Handle: RePEc:inq:inqwps:ecineq2008-91
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    File URL: http://www.ecineq.org/milano/WP/ECINEQ2008-91.pdf
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    Cited by:

    1. Oihana Aristondo & José Luis García-Lapresta & Casilda Lasso de la Vega & Ricardo Alberto Marques Pereira, 2011. "The Gini index,the dual decomposition of aggregation functions, and the consistent measurement of inequality," Working Papers 203, ECINEQ, Society for the Study of Economic Inequality.
    2. Lin Yang, 2017. "The relationship between poverty and inequality: Concepts and measurement," CASE Papers /205, Centre for Analysis of Social Exclusion, LSE.
    3. repec:kap:jecinq:v:15:y:2017:i:2:d:10.1007_s10888-017-9349-7 is not listed on IDEAS
    4. Suman Seth and Sabina Alkire, 2014. "Measuring and Decomposing Inequality among the Multidimensionally Poor Using Ordinal Data: A Counting Approach," OPHI Working Papers ophiwp068, Queen Elizabeth House, University of Oxford.
    5. Valérie Bérenger, 2017. "The counting approach to multidimensional poverty: The case of four African countries," WIDER Working Paper Series 210, World Institute for Development Economic Research (UNU-WIDER).
    6. Oihana Aristondo & Francisco J. Goerlich Gisbert & Casilda Lasso De La Vega, 2015. "A Proposal to Compare Consistently the Inequality Among the Poor," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 61(3), pages 561-572, September.

    More about this item

    Keywords

    Poverty Measurement; Foster-Greer-Thorbecke poverty indices; Multiplicative Decomposition.;

    JEL classification:

    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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