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Counting and Multidimensional Poverty Measurement

  • Sabina Alkire and James Foster

This paper proposes a new methodology for multidimensional poverty measurement consisting of an identification method ρκ that extends traditional approaches, and a class of poverty measures Ma that satisfies several desirable properties including decomposability. Our identification step employs two forms of cutoff: one within each dimension and a second across dimensions that identifies the poor by counting their deprivations. We aggregate using Foster-Greer-Thorbecke measures adjusted for multidimensionality. Our adjusted headcount ratio is well suited for use with ordinal data. Examples from Indonesia and the US illustrate our methodology.

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File URL: http://www3.qeh.ox.ac.uk/pdf/ophiwp/OPHIWP007.pdf
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Paper provided by Queen Elizabeth House, University of Oxford in its series OPHI Working Papers with number ophiwp007.

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Date of creation: Feb 2009
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Handle: RePEc:qeh:ophiwp:ophiwp007
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  1. Amartya Sen, 2004. "Capabilities, Lists, And Public Reason: Continuing The Conversation," Feminist Economics, Taylor & Francis Journals, vol. 10(3), pages 77-80.
  2. Maasoumi, Esfandiar & Lugo, Maria, 2006. "The Information Basis of Multivariate Poverty Assessments," Departmental Working Papers 0603, Southern Methodist University, Department of Economics.
  3. Atkinson, A B, 1987. "On the Measurement of Poverty," Econometrica, Econometric Society, vol. 55(4), pages 749-64, July.
  4. Duclos, Jean-Yves & Sahn, David & Younger, Stephen D., 2001. "Robust Multidimensional Poverty Comparisons," Cahiers de recherche 0115, Université Laval - Département d'économique.
  5. BOSSERT, Walter & D'AMBROSIO, Conchita & PERAGINE, Vito, 2004. "Deprivation and Social Exclusion," Cahiers de recherche 02-2004, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
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  8. Feres, Juan Carlos & Mancero, Xavier, 2001. "El método de las necesidades básicas insatisfechas (NBI) y sus aplicaciones en América Latina," Estudios Estadísticos 7, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
  9. Caterina Ruggeri Laderchi & Ruhi Saith & Frances Stewart, 2003. "Does it Matter that we do not Agree on the Definition of Poverty? A Comparison of Four Approaches," Oxford Development Studies, Taylor & Francis Journals, vol. 31(3), pages 243-274.
  10. Ingrid Robeyns, 2005. "Selecting Capabilities for Quality of Life Measurement," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 74(1), pages 191-215, October.
  11. David Colander, 2002. "The Death of Neoclassical Economics," Middlebury College Working Paper Series 0237, Middlebury College, Department of Economics.
  12. Joseph Deutsch & Jacques Silber, 2005. "Measuring Multidimensional Poverty: An Empirical Comparison Of Various Approaches," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 51(1), pages 145-174, 03.
  13. Alkire, Sabina, 2002. "Dimensions of Human Development," World Development, Elsevier, vol. 30(2), pages 181-205, February.
  14. Nolan, Brian & Whelan, Christopher T., 1996. "Resources, Deprivation, and Poverty," OUP Catalogue, Oxford University Press, number 9780198287858, December.
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  16. A. Atkinson, 2003. "Multidimensional Deprivation: Contrasting Social Welfare and Counting Approaches," Journal of Economic Inequality, Springer, vol. 1(1), pages 51-65, April.
  17. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May.
  18. Alkire, Sabina, 2008. "Choosing Dimensions: The Capability Approach and Multidimensional Poverty," MPRA Paper 8862, University Library of Munich, Germany.
  19. Allison, R. Andrew & Foster, James E., 2004. "Measuring health inequality using qualitative data," Journal of Health Economics, Elsevier, vol. 23(3), pages 505-524, May.
  20. Ravallion, Martin, 1994. "Measuring Social Welfare with and without Poverty Lines," American Economic Review, American Economic Association, vol. 84(2), pages 359-64, May.
  21. Atkinson, Tony & Cantillon, Bea & Marlier, Eric & Nolan, Brian, 2002. "Social Indicators: The EU and Social Inclusion," OUP Catalogue, Oxford University Press, number 9780199253494, December.
  22. 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.
  23. Serge-Christophe Kolm, 1977. "Multidimensional Egalitarianisms," The Quarterly Journal of Economics, Oxford University Press, vol. 91(1), pages 1-13.
  24. Boland, Philip J. & Proschan, Frank, 1988. "Multivariate arrangement increasing functions with applications in probability and statistics," Journal of Multivariate Analysis, Elsevier, vol. 25(2), pages 286-298, May.
  25. 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.
  26. Sen, Amartya, 1997. "On Economic Inequality," OUP Catalogue, Oxford University Press, number 9780198292975, December.
  27. Sen, Amartya K, 1976. "Poverty: An Ordinal Approach to Measurement," Econometrica, Econometric Society, vol. 44(2), pages 219-31, March.
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