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Robust ``pro-poorest'' poverty reduction with counting measures: The anonymous case

Listed author(s):
  • José V. Gallegos

    (Peruvian Ministry of Development and Social Inclusion, Peru)

  • Gaston Yalonetzky

    ()

    (University of Leeds, UK)

When measuring poverty with counting measures, it is worth inquiring into the conditions prompting poverty reduction which not only reduce the average poverty score further but also decrease deprivation inequality among the poor, thereby emphasizing improvements among the poorest of the poor. For comparisons of cross-sectional datasets of the same society in different periods of time (i.e. an anonymous assessment), Lasso de la Vega (2010) and Alkire and Foster (2011) developed a first-order dominance condition based on counting poverty headcounts, whose fulfillment ensures that multidimensional poverty decreases for a broad family of counting poverty measures. Further, Chakravarty and Zoli (2009) and Lasso de la Vega (2010) derived a second-order dominance condition based on reverse generalized Lorenz curves, whose fulfillment ensures that multidimensional poverty decreases along with a reduction in deprivation inequality for a broad family of inequality-sensitive poverty measures. However, both conditions hold for a predetermined vector of weights for the poverty dimensions. In this paper we refine the second-order conditions in order to obtain necessary and sufficient conditions whose fulfillment ensures that multidimensional poverty reduction is robust to a broad array of weighting vectors and inequality-sensitive poverty measures. We illustrate these methods with an application to multidimensional poverty in Peru before and after the 2008 world financial crisis.

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File URL: http://www.ecineq.org/milano/WP/ECINEQ2015-361.pdf
File Function: Pro-poorest poverty reduction, multidimensional poverty, reverse generalized Lorenz curve.
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Paper provided by ECINEQ, Society for the Study of Economic Inequality in its series Working Papers with number 361.

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Length: 34 pages
Date of creation: Apr 2015
Handle: RePEc:inq:inqwps:ecineq2015-361
Contact details of provider: Web page: http://www.ecineq.org
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  1. Chakravarty, Satya R. & Zoli, Claudio, 2012. "Stochastic dominance relations for integer variables," Journal of Economic Theory, Elsevier, vol. 147(4), pages 1331-1341.
  2. Dorothée Boccanfuso & Jean Bosco Ki & Caroline Ménard, 2009. "Pro-Poor Growth Measurements in a Multidimensional Model: A Comparative Approach," Cahiers de recherche 09-22, Departement d'Economique de l'École de gestion à l'Université de Sherbrooke.
  3. Satya R. Chakravarty & Conchita D'Ambrosio, 2006. "The Measurement Of Social Exclusion," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 52(3), pages 377-398, 09.
  4. Alkire, Sabina & Foster, James, 2011. "Counting and multidimensional poverty measurement," Journal of Public Economics, Elsevier, vol. 95(7-8), pages 476-487, August.
  5. Alkire, Sabina & Santos, Maria Emma, 2014. "Measuring Acute Poverty in the Developing World: Robustness and Scope of the Multidimensional Poverty Index," World Development, Elsevier, vol. 59(C), pages 251-274.
  6. Gaston Yalonetzky, 2014. "Conditions for the most robust multidimensional poverty comparisons using counting measures and ordinal variables," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 43(4), pages 773-807, December.
  7. José V. Gallegos & Gaston Yalonetzky, 2014. "Robust ``pro-poorest'' poverty reduction with counting measures: the non-anonymous case," Working Papers 351, ECINEQ, Society for the Study of Economic Inequality.
  8. Ma. Casilda Lasso de la Vega, 2009. "Counting poverty orderings and deprivation curves," Working Papers 150, ECINEQ, Society for the Study of Economic Inequality.
  9. Valérie Bérenger & Florent Bresson, 2012. "On The “Pro-Poorness” Of Growth In A Multidimensional Context," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 58(3), pages 457-480, 09.
  10. Michael Grimm, 2007. "Removing the anonymity axiom in assessing pro-poor growth," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 5(2), pages 179-197, August.
  11. Satya R. Chakravarty & Claudio Zoli, 2009. "Social Exclusion Orderings," Working Papers 66/2009, University of Verona, Department of Economics.
  12. Jenkins, Stephen P & Lambert, Peter J, 1997. "Three 'I's of Poverty Curves, with an Analysis of UK Poverty Trends," Oxford Economic Papers, Oxford University Press, vol. 49(3), pages 317-327, July.
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