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Robust Multidimensional Poverty Comparisons

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  • Duclos, Jean-Yves
  • Sahn, David
  • Younger, Stephen D.

Abstract

We investigate how to make poverty comparisons using multidimensional indicators of well-being, showing in particular how to check whether the comparisons are robust to the choice of poverty indices and poverty lines. Our methodology applies equally well to either of what can be defined as "union" and "intersection" approaches to dealing with multidimensional indicators of well-being. When one of two variables is discrete, our methods specialize to those that Atkinson (1991), Jenkins and Lambert (1993) and others have developed to deal with household composition heterogeneity. The results also extend the statistical results recently derived in Davidson and Duclos (2000) to cases where well-being is measured in two or more dimensions. We thus derive the sampling distribution of various multidimensional poverty estimators, including estimators of the "critical" frontiers of poverty lines above which multidimensional poverty comparisons are no longer ethically robust.

Suggested Citation

  • Duclos, Jean-Yves & Sahn, David & Younger, Stephen D., 2001. "Robust Multidimensional Poverty Comparisons," Cahiers de recherche 0115, Université Laval - Département d'économique.
    • Handle: RePEc:lvl:laeccr:0115
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    References listed on IDEAS

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    1. Sahn, David E. & Stifel, David C., 2000. "Poverty Comparisons Over Time and Across Countries in Africa," World Development, Elsevier, vol. 28(12), pages 2123-2155, December.
    2. Jean‐Yves Duclos & Paul Makdissi, 2005. "Sequential Stochastic Dominance And The Robustness Of Poverty Orderings," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 51(1), pages 63-87, March.
    3. Bourguignon, Francois & Fields, Gary, 1997. "Discontinuous losses from poverty, generalized P[alpha] measures, and optimal transfers to the poor," Journal of Public Economics, Elsevier, vol. 63(2), pages 155-175, January.
    4. Russell Davidson & Jean-Yves Duclos, 2000. "Statistical Inference for Stochastic Dominance and for the Measurement of Poverty and Inequality," Econometrica, Econometric Society, vol. 68(6), pages 1435-1464, November.
    5. Jenkins, Stephen P & Lambert, Peter J, 1993. "Ranking Income Distributions When Needs Differ," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 39(4), pages 337-356, December.
    6. Christine Chambaz & Eric Maurin, 1998. "Atkinson And Bourguignon'S Dominance Criteria: Extended And Applied To The Measurement Of Poverty In France," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 44(4), pages 497-513, December.
    7. Margaret E. Grosh & Paul Glewwe, 1998. "Data Watch: The World Bank's Living Standards Measurement Study Household Surveys," Journal of Economic Perspectives, American Economic Association, vol. 12(1), pages 187-196, Winter.
    8. Fishburn, Peter C. & Willig, Robert D., 1984. "Transfer principles in income redistribution," Journal of Public Economics, Elsevier, vol. 25(3), pages 323-328, December.
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    More about this item

    Keywords

    Multidimensional Poverty; Stochastic Dominance;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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