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Multidimensional indices of achievements and poverty: What do we gain and what do we lose?

Author

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  • Nora Lustig

    (Tulane University and Center for Global Development)

Abstract

Poverty and wellbeing are multi-dimensional. Nobody questions that deprivations and achievements go beyond income. There is, however, sharp disagreement on whether the various dimensions of poverty and wellbeing can be aggregated into a single, multi-dimensional index in a meaningful way. Is aggregating dimensions of poverty and wellbeing useful? Is it sensible? Here I summarize and contrast three key papers that respond these questions in strikingly different ways. The papers are: The HDI 2010: New Controversies, Old Critiques by Jeni Klugman, Francisco Rodríguez and Hyung-Jin Choi; Understandings and Misunderstandings of Multidimensional Poverty Measurement by Sabina Alkire and James Foster; and, On Multidimensional Indices of Poverty by Martin Ravallion.

Suggested Citation

  • Nora Lustig, 2011. "Multidimensional indices of achievements and poverty: What do we gain and what do we lose?," Working Papers 210, ECINEQ, Society for the Study of Economic Inequality.
    • Handle: RePEc:inq:inqwps:ecineq2011-210
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    File URL: http://www.ecineq.org/milano/WP/ECINEQ2011-210.pdf
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    Citations

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    Cited by:

    1. Bénédicte Apouey & David Madden, 2023. "Health poverty," Chapters, in: Jacques Silber (ed.), Research Handbook on Measuring Poverty and Deprivation, chapter 19, pages 202-211, Edward Elgar Publishing.
    2. Bucheli, José R. & Bohara, Alok K. & Villa, Kira, 2016. "The Impact of a Rural Road Development Project on Multidimensional Poverty in Nepal," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235214, Agricultural and Applied Economics Association.
    3. Olu Ajakaiye & Afeikhena T. Jerome & Olanrewaju Olaniyan & Kristi Mahrt & Olufunke A. Alaba, 2014. "Multidimensional Poverty in Nigeria: First Order Dominance Approach," WIDER Working Paper Series wp-2014-143, World Institute for Development Economic Research (UNU-WIDER).
    4. Francisco H. G. Ferreira & Maria Ana Lugo, 2013. "Multidimensional Poverty Analysis: Looking for a Middle Ground," The World Bank Research Observer, World Bank Group, vol. 28(2), pages 220-235, August.
    5. Francisco Ferreira, 2011. "Poverty is multidimensional. But what are we going to do about it?," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 9(3), pages 493-495, September.
    6. Jamshed Y. Uppal & Syeda Rabab Mudakkar, 2013. "Human Development and Economic Uncertainties: Exploring Another Dimension of Development," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 18(Special E), pages 305-334, September.
    7. Sung-Geun Kim, 2023. "What can we talk about social cohesion in Korea? An item response theory approach," Quality & Quantity: International Journal of Methodology, Springer, vol. 57(3), pages 2409-2427, June.
    8. Bronfman, Javier, 2014. "Beyond Income: A Study of Multidimensional Poverty in Chile," MPRA Paper 63256, University Library of Munich, Germany.
    9. Ajakaiye, Olu & Jerome, Afeikhena T. & Olaniyan, Olanrewaju & Mahrt, Kristi & Alaba, Olufunke A., 2014. "Multidimensional poverty in Nigeria: First order dominance approach," WIDER Working Paper Series 143, World Institute for Development Economic Research (UNU-WIDER).
    10. Espinoza-Delgado, José & Klasen, Stephan, 2018. "Gender and multidimensional poverty in Nicaragua: An individual based approach," World Development, Elsevier, vol. 110(C), pages 466-491.
    11. David Madden, 2015. "Health and Wealth on the Roller-Coaster: Ireland, 2003–2011," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 121(2), pages 387-412, April.
    12. Akarsh Arora & Sukhpal Singh, 2022. "Questioning the poverty line aggregation approach in India: Issues of mismatches and overlaps," Poverty & Public Policy, John Wiley & Sons, vol. 14(2), pages 117-136, June.
    13. Nadia von Jacobi, 2018. "Institutions as Meso-factors of Development: A Human Development Perspective," Journal of Contextual Economics (JCE) – Schmollers Jahrbuch, Duncker & Humblot, Berlin, vol. 138(1), pages 53-88.
    14. Bruno Cheli & Achille Lemmi & Nicoletta Pannuzi & Andrea Regoli, 2019. "From the TFR to the IFR approach for the multidimensional analysis of poverty and living conditions," Discussion Papers 2019/252, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.

    More about this item

    Keywords

    poverty measurement; multidimensional poverty; deprivation; axioms; Human Development Index; capabilities; substitutability; trade-offs; welfare; country classifications;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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