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Multidimensional poverty analysis: Looking for a middle ground

Author

Listed:
  • Francisco Ferreira

    (IWorld Bank and IZA)

  • Maria Ana Lugo

    (IWorld Bank)

Abstract

Widespread agreement that poverty is a multifaceted phenomenon, encompassing deprivations along multiple dimensions, clashes with often vociferous disagreement about how best to measure these deprivations. Drawing on the recent literature, this short note proposes three methodological alternatives to the false dichotomy between scalar indices of multidimensional poverty, on the one hand, and a “dashboard” approach that looks only at marginal distributions, on the other. These alternatives include simple Venn diagrams of the overlap of deprivations across dimensions, multivariate stochastic dominance analysis, and the analysis of copula functions, which capture the extent of interdependency across dimensions. Examples from the literature on both developing and developed countries are provided.

Suggested Citation

  • Francisco Ferreira & Maria Ana Lugo, 2012. "Multidimensional poverty analysis: Looking for a middle ground," Working Papers 251, ECINEQ, Society for the Study of Economic Inequality.
    • Handle: RePEc:inq:inqwps:ecineq2012-251
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    File URL: http://www.ecineq.org/milano/WP/ECINEQ2012-251.pdf
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    References listed on IDEAS

    as
    1. Sabina Alkire, Maria Emma Santos, 2010. "Acute Multidimensional Poverty: A New Index for Developing Countries," OPHI Working Papers 38, Queen Elizabeth House, University of Oxford.
    2. Esfandiar Maasoumi & Maria Ana Lugo, 2008. "The Information Basis of Multivariate Poverty Assessments," Palgrave Macmillan Books, in: Nanak Kakwani & Jacques Silber (ed.), Quantitative Approaches to Multidimensional Poverty Measurement, chapter 1, pages 1-29, Palgrave Macmillan.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Multidimensional poverty; dependency structure; copulas.;
    All these keywords.

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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