Multidimensional Poverty Frontiers: Parametric Aggregators Based on Nonparametric Distributions
We propose a new technique for the estimation of multidimensional evaluation functions. Technical advances allow nonparametric inference on the joint distribution of continuous and discrete indicators of well-being, such as income and health, conditional on joint values of other continuous and discrete attributes, such as education and geographical groupings. In a multiattribute setting, "quantiles" are "frontiers" that define equivalent sets of covariate values. We identify these frontiers nonparametrically at first. Then we suggest "parametrically equivalent" characterizations of these frontiers that reveal likely, but different, weights for and substitutions between different attributes for different groups, and at different quantiles. These estimated parametric functionals are "ideal" in a certain sense which we make clear. They correspond directly to measures of aggregate well-being popularized in the earliest multidimensional inequality measures in Maasoumi (1986). This new approach resolves a classic problem of assigning weights to dimensions of well-being, as well as empirically incorporating the key component in multidimensional analysis, the relationship between the attributes. It introduces a new way to robust estimation of "quantile frontiers", allowing "complete" assessments, such as multidimensional poverty measurements. We discover massive heterogeneity in individual evaluation functions. This leads us to perform robust, weak uniform rankings as afforded by nonparametric tests for stochastic dominance. A demonstration is provided based on the Indonesian data analyzed for multidimensional poverty in Maasoumi & Lugo (2008).
|Date of creation:||Mar 2013|
|Contact details of provider:|| Postal: 1280 Main Street West, Hamilton, Ontario, L8S 4M4|
Phone: (905) 525-9140 ext. 22765
Fax: (905) 521-8232
Web page: http://www.economics.mcmaster.ca/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Fleurbaey,Marc & Maniquet,FranÃ§ois, 2011.
"A Theory of Fairness and Social Welfare,"
Cambridge University Press, number 9780521715348, December.
- Fleurbaey,Marc & Maniquet,FranÃ§ois, 2011. "A Theory of Fairness and Social Welfare," Cambridge Books, Cambridge University Press, number 9780521887427, December.
- Jean-Yves Duclos & David E. Sahn & Stephen D. Younger, 2006. "Robust Multidimensional Poverty Comparisons," Economic Journal, Royal Economic Society, vol. 116(514), pages 943-968, October.
- Duclos, Jean-Yves & Sahn, David & Younger, Stephen D., 2001. "Robust Multidimensional Poverty Comparisons," Cahiers de recherche 0115, Université Laval - Département d'économique.
- Maasoumi, Esfandiar & Lugo, Maria, 2006. "The Information Basis of Multivariate Poverty Assessments," Departmental Working Papers 0603, Southern Methodist University, Department of Economics.
- Esfandiar Maasoumi & Maria Ana Lugo, 2008. "The Information Basis of Multivariate Poverty Assessments," Emory Economics 0804, Department of Economics, Emory University (Atlanta).
- Duclos, Jean-Yves & Sahn, David E. & Younger, Stephen D., 2011. "Partial multidimensional inequality orderings," Journal of Public Economics, Elsevier, vol. 95(3-4), pages 225-238, April.
- Duclos, Jean-Yves & Sahn, David E. & Younger, Stephen D., 2011. "Partial multidimensional inequality orderings," Journal of Public Economics, Elsevier, vol. 95(3), pages 225-238.
- Jean-Yves Duclos & David E. Sahn & Stephen D. Younger, 2010. "Partial Multidimensional Inequality Orderings," Cahiers de recherche 1003, CIRPEE.
- 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.
- Bourguignon, F. & Chakravarty, S.R., 1998. "The Measurement of Multidimensional Poverty," DELTA Working Papers 98-12, DELTA (Ecole normale supérieure).
- Hayfield, Tristen & Racine, Jeffrey S., 2008. "Nonparametric Econometrics: The np Package," Journal of Statistical Software, Foundation for Open Access Statistics, vol. 27(i05).
- Koen Decancq & María Ana Lugo, 2013. "Weights in Multidimensional Indices of Wellbeing: An Overview," Econometric Reviews, Taylor & Francis Journals, vol. 32(1), pages 7-34, January.
- DECANCQ, Koen & LUGO, Maria Ana, "undated". "Weights in multidimensional indices of wellbeing: an overview," CORE Discussion Papers RP 2493, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Koen DECANCQ & María Ana LUGO, 2010. "Weights in multidimensional indices of well-being: an overview," Working Papers Department of Economics ces10.06, KU Leuven, Faculty of Economics and Business, Department of Economics.
- Peter Hall & Jeff Racine & Qi Li, 2004. "Cross-Validation and the Estimation of Conditional Probability Densities," Journal of the American Statistical Association, American Statistical Association, vol. 99, pages 1015-1026, December.
- A. B. Atkinson & F. Bourguignon, 1982. "The Comparison of Multi-Dimensioned Distributions of Economic Status," Review of Economic Studies, Oxford University Press, vol. 49(2), pages 183-201.
- Li, Qi & Racine, Jeffrey S, 2008. "Nonparametric Estimation of Conditional CDF and Quantile Functions With Mixed Categorical and Continuous Data," Journal of Business & Economic Statistics, American Statistical Association, vol. 26, pages 423-434.
- Qi Li & Jeffrey Scott Racine, 2006. "Nonparametric Econometrics: Theory and Practice," Economics Books, Princeton University Press, edition 1, number 8355.
- Maasoumi, Esfandiar, 1986. "The Measurement and Decomposition of Multi-dimensional Inequality," Econometrica, Econometric Society, vol. 54(4), pages 991-997, July.
- Maasoumi, Esfandiar, 1989. "Continuously distributed attributes and measures of multivariate inequality," Journal of Econometrics, Elsevier, vol. 42(1), pages 131-144, September. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:mcm:deptwp:2013-07. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.