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Conditions for the Most Robust Poverty Comparisons Using the Alkire-Foster Family of Measures

  • Gaston Yalonetzky

In the burgeoning literature on multidimensional poverty indices, the Alkire-Foster (AF) measures stand out for their resilience in identifying the multidimensionally poor with cut-off criteria covering the spectrum from the union approach to the intersection approach. The intuitiveness and easy applicability of the measures’ identification and aggregation methods are reflected in the increasing use of the AF measures in poverty measurement, as well as in other fields. This paper extends the dominance results derived by Lasso de la Vega (2009) and Alkire and Foster (2010) for the adjusted headcount ratio and develops a new condition whose fulfillment ensures the robustness of comparisons using the adjusted headcount ratio for any choice of multidimensional cut-off and for any weights and poverty lines. The paper then derives a first-order dominance condition for the whole Alkire-Foster family (that is, for continuous variables).

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Paper provided by Queen Elizabeth House, University of Oxford in its series OPHI Working Papers with number ophiwp044b.

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Date of creation: Sep 2011
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Handle: RePEc:qeh:ophiwp:ophiwp044b
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  1. Jean-Yves Duclos & David Sahn & Stephen D. Younger, 2006. "Robust Multidimensional Poverty Comparisons with Discrete Indicators of Well-being," Cahiers de recherche 0628, CIRPEE.
  2. 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.
  3. Diego Battiston & Guillermo Cruces & Luis Lopez-Calva & Maria Lugo & Maria Santos, 2013. "Income and Beyond: Multidimensional Poverty in Six Latin American Countries," Social Indicators Research, Springer, vol. 112(2), pages 291-314, June.
  4. Ravallion, Martin, 2010. "Mashup indices of development," Policy Research Working Paper Series 5432, The World Bank.
  5. Alkire, Sabina & Foster, James, 2011. "Counting and multidimensional poverty measurement," Journal of Public Economics, Elsevier, vol. 95(7-8), pages 476-487, August.
  6. Sabina Alkire and Maria Emma Santos, 2010. "Acute Multidimensional Poverty: A New Index for Developing Countries," OPHI Working Papers ophiwp038, Queen Elizabeth House, University of Oxford.
  7. Jean-Yves Duclos & David Sahn & Stephen D. Younger, 2005. "Robust Multidimensional Spatial Poverty Comparisons in Ghana, Madagascar, and Uganda," Cahiers de recherche 0528, CIRPEE.
  8. Ian Crawford, 2005. "A nonparametric test of stochastic dominance in multivariate distributions," School of Economics Discussion Papers 1205, School of Economics, University of Surrey.
  9. Gaston Yalonetzky, 2013. "Stochastic Dominance with Ordinal Variables: Conditions and a Test," Econometric Reviews, Taylor & Francis Journals, vol. 32(1), pages 126-163, January.
  10. 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.
  11. Yélé Batana, 2013. "Multidimensional Measurement of Poverty Among Women in Sub-Saharan Africa," Social Indicators Research, Springer, vol. 112(2), pages 337-362, June.
  12. Sen, Amartya, 2001. "Development as Freedom," OUP Catalogue, Oxford University Press, number 9780192893307, March.
  13. Ma. Casilda Lasso de la Vega, 2009. "Counting poverty orderings and deprivation curves," Working Papers 150, ECINEQ, Society for the Study of Economic Inequality.
  14. A. Atkinson, 2003. "Multidimensional Deprivation: Contrasting Social Welfare and Counting Approaches," Journal of Economic Inequality, Springer, vol. 1(1), pages 51-65, April.
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