A New Approach to Multidimensional Poverty Measurement
We present here a multidimensional poverty index that measures poverty as a function of the extent and the intensity of poverty. Extent is given by the share of the poor in the population. To measure intensity we start by defining individual unidimensional deprivation indices (one for each individual and each dimension) and then aggregating them as a geometric mean. Each individual deprivation index is simply the inverse of the share of individual achievements in the poverty thresholds. Our approach involves an elementary characterization, the determination of a specific formula, and the endogeneous identification of the poor.
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