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Conditions for the most robust multidimensional poverty comparisons using counting measures and ordinal variables

  • Gaston Yalonetzky

    ()

    (University of Leeds & OPHI)

A natural concern with multivariate poverty measures, as well as with other composite indices, is the robustness of their ordinal comparisons to changes in the indices’ parameter values. Applying multivariate stochastic dominance techniques, this paper derives the distributional conditions under which a multidimensional poverty comparison based on the popular counting measures, and ordinal variables, is fully robust to any values of the indices.parameters. As the paper shows, the conditions are relevant to most of the multidimensional poverty indices in the literature, including the Alkire-Foster family, upon which the UNDP.s "Multidimensional Poverty Index" (MPI) is based. The conditions are illustrated with an example from the EU-SILC dataset.

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File URL: http://www.ecineq.org/milano/WP/ECINEQ2012-257.pdf
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Paper provided by ECINEQ, Society for the Study of Economic Inequality in its series Working Papers with number 257.

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Length: 24 pages
Date of creation: Jun 2012
Date of revision:
Handle: RePEc:inq:inqwps:ecineq2012-257
Contact details of provider: Web page: http://www.ecineq.org
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  1. Walter Bossert & Satya R. Chakravarty & Conchita D'Ambrosio, 2009. "Multidimensional poverty and material deprivation," Working Papers 129, ECINEQ, Society for the Study of Economic Inequality.
  2. Walter Bossert & Satya R. Chakravarty & Conchita D'Ambrosio, 2013. "Multidimensional Poverty and Material Deprivation with Discrete Data," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 59(1), pages 29-43, 03.
  3. Satya R. Chakravarty & Conchita D'Ambrosio, 2003. "The Measurement of Social Exclusion," Discussion Papers of DIW Berlin 364, DIW Berlin, German Institute for Economic Research.
  4. Jean-Yves Duclos & David Sahn & Stephen D. Younger, 2006. "Robust Multidimensional Spatial Poverty Comparisons in Ghana, Madagascar, and Uganda," World Bank Economic Review, World Bank Group, vol. 20(1), pages 91-113.
  5. Jean-Yves Duclos & David Sahn & Stephen D. Younger, 2006. "Robust Multidimensional Poverty Comparisons with Discrete Indicators of Well-being," Cahiers de recherche 0628, CIRPEE.
  6. Duclos, Jean-Yves & Sahn, David & Younger, Stephen D., 2001. "Robust Multidimensional Poverty Comparisons," Cahiers de recherche 0115, Université Laval - Département d'économique.
  7. Yélé Batana, 2013. "Multidimensional Measurement of Poverty Among Women in Sub-Saharan Africa," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 112(2), pages 337-362, June.
  8. Ravallion, Martin, 2010. "Mashup indices of development," Policy Research Working Paper Series 5432, The World Bank.
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  10. Alkire, Sabina & Foster, James, 2011. "Counting and multidimensional poverty measurement," Journal of Public Economics, Elsevier, vol. 95(7-8), pages 476-487, August.
  11. James E. Foster & Andrew W. Horowitz & Fabio Méndez, 2012. "An Axiomatic Approach to the Measurement of Corruption: Theory and Applications," World Bank Economic Review, World Bank Group, vol. 26(2), pages 217-235.
  12. Ma. Casilda Lasso de la Vega, 2009. "Counting poverty orderings and deprivation curves," Working Papers 150, ECINEQ, Society for the Study of Economic Inequality.
  13. Diego Battiston & Guillermo Cruces & Luis Felipe Lopez Calva & Maria Ana Lugo & Maria Emma Santos, 2009. "Income and Beyond: Multidimensional Poverty in six Latin American countries," CEDLAS, Working Papers 0090, CEDLAS, Universidad Nacional de La Plata.
  14. Alkire, Sabina & Santos, María Emma, 2011. "Acute Multidimensional Poverty: A New Index for Developing Countries," Proceedings of the German Development Economics Conference, Berlin 2011 3, Verein für Socialpolitik, Research Committee Development Economics.
  15. Ian Crawford, 2005. "A nonparametric test of stochastic dominance in multivariate distributions," School of Economics Discussion Papers 1205, School of Economics, University of Surrey.
  16. Kai-yuen Tsui, 2002. "Multidimensional poverty indices," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 19(1), pages 69-93.
  17. Gordon Anderson, 2008. "The empirical assessment of multidimensional welfare, inequality and poverty: Sample weighted multivariate generalizations of the Kolmogorov–Smirnov two sample tests for stochastic dominance," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 6(1), pages 73-87, March.
  18. François Bourguignon & Satya Chakravarty, 2003. "The Measurement of Multidimensional Poverty," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 1(1), pages 25-49, April.
  19. Kannai, Yakar, 1980. "The ALEP definition of complementarity and least concave utility functions," Journal of Economic Theory, Elsevier, vol. 22(1), pages 115-117, February.
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  21. Gaston Yalonetzky, 2013. "Stochastic Dominance with Ordinal Variables: Conditions and a Test," Econometric Reviews, Taylor & Francis Journals, vol. 32(1), pages 126-163, January.
  22. Sen, Amartya, 2001. "Development as Freedom," OUP Catalogue, Oxford University Press, number 9780192893307, December.
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