IDEAS home Printed from https://ideas.repec.org/p/qeh/ophiwp/ophiwp100_2.pdf.html
   My bibliography  Save this paper

Dimensional and Distributional Contributions to Multidimensional Poverty

Author

Listed:
  • Sabina Alkire and James Foster

Abstract

The adjusted headcount ratio M0 of Alkire and Foster (2011a) is increasingly being adopted by countries and international organizations to measure poverty. Three properties are largely responsible for its growing use: Subgroup Decomposability, by which an assessment of subgroup contributions to overall poverty can be made, facilitating regional analysis and targeting; Dimensional Breakdown, by which an assessment of dimensional contributions to overall poverty can be made after the poor have been identified, facilitating coordination; and Ordinality, which ensures that the method can be used in cases where variables only have ordinal meaning. Following Sen (1976), a natural question to ask is whether sensitivity to inequality among the poor can be incorporated into this multidimensional framework. We propose a Dimensional Transfer axiom that applies to multidimensional poverty measures and specifies conditions under which poverty must fall as inequality among the poor decreases. An intuitive transformation is defined to obtain multidimensional measures with desired properties from unidimensional FGT measures having analogous properties; in particular, Dimensional Transfer follows from the standard Transfer axiom for unidimensional measures. A version of the unidimensional measures yields the M-gamma class Mγ/0 containing the multidimensional headcount ratio for γ=0, the adjusted headcount ratio M0 for γ=1, and a squared count measure for γ=2, satisfying Dimensional Transfer. Other examples show the ease with which measures can be constructed that satisfy Subgroup Decomposability, Ordinality, and Dimensional Transfer. However, none of these examples satisfies Dimensional Breakdown. A general impossibility theorem explains why this is so: Dimensional Breakdown is effectively inconsistent with Dimensional Transfer. Given the importance of Dimensional Breakdown for policy analysis, we suggest maintaining the adjusted headcount ratio as a central measure, augmented by the squared count measure or other indices that capture inequality among the poor. The methods are illustrated with an example from Cameroon.

Suggested Citation

  • Sabina Alkire and James Foster, 2016. "Dimensional and Distributional Contributions to Multidimensional Poverty," OPHI Working Papers ophiwp100_2.pdf, Queen Elizabeth House, University of Oxford.
  • Handle: RePEc:qeh:ophiwp:ophiwp100_2.pdf
    as

    Download full text from publisher

    File URL: http://workingpapers.qeh.ox.ac.uk/pdf/ophiwp/OPHIWP100_2.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Shatakshee Dhongde & Yi Li & Prasanta K. Pattanaik & Yongsheng Xu, 2016. "Binary data, hierarchy of attributes, and multidimensional deprivation," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 14(4), pages 363-378, December.
    2. Alkire, Sabina & Meinzen-Dick, Ruth & Peterman, Amber & Quisumbing, Agnes & Seymour, Greg & Vaz, Ana, 2013. "The Women’s Empowerment in Agriculture Index," World Development, Elsevier, vol. 52(C), pages 71-91.
    3. 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, September.
    4. Atkinson, A B, 1987. "On the Measurement of Poverty," Econometrica, Econometric Society, vol. 55(4), pages 749-764, July.
    5. Alkire, Sabina & Foster, James, 2011. "Counting and multidimensional poverty measurement," Journal of Public Economics, Elsevier, vol. 95(7), pages 476-487.
    6. Maasoumi, Esfandiar & Lugo, Maria, 2006. "The Information Basis of Multivariate Poverty Assessments," Departmental Working Papers 0603, Southern Methodist University, Department of Economics.
    7. Sabina Alkire, James E. Foster, Suman Seth, Maria Emma Santos, Jose M. Roche and Paola Ballon, 2015. "Multidimensional Poverty Measurement and Analysis: Chapter 9 - Distribution and Dynamics," OPHI Working Papers ophiwp090_ch9.pdf, Queen Elizabeth House, University of Oxford.
    8. 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.
    9. Sabina Alkire, James E. Foster, Suman Seth, Maria Emma Santos, Jose M. Roche and Paola Ballon, 2015. "Multidimensional Poverty Measurement and Analysis: Chapter 7 - Data and Analysis," OPHI Working Papers ophiwp088_ch7.pdf, Queen Elizabeth House, University of Oxford.
    10. James Foster & Suman Seth & Michael Lokshin & Zurab Sajaia, 2013. "A Unified Approach to Measuring Poverty and Inequality--Theory and Practice : Streamlined Analysis with ADePT Software," World Bank Publications, The World Bank, number 13731, August.
    11. Sabina Alkire, James E. Foster, Suman Seth, Maria Emma Santos, Jose M. Roche and Paola Ballon, 2015. "Multidimensional Poverty Measurement and Analysis: Chapter 5 - The Alkire-Foster Counting Methodology," OPHI Working Papers ophiwp086_ch5.pdf, Queen Elizabeth House, University of Oxford.
    12. Foster, James E & Shorrocks, Anthony F, 1991. "Subgroup Consistent Poverty Indices," Econometrica, Econometric Society, vol. 59(3), pages 687-709, May.
    13. 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.
    14. Alkire, Sabina & Roche, José Manuel & Vaz, Ana, 2017. "Changes Over Time in Multidimensional Poverty: Methodology and Results for 34 Countries," World Development, Elsevier, vol. 94(C), pages 232-249.
    15. Sen, Amartya, 1973. "On Economic Inequality," OUP Catalogue, Oxford University Press, number 9780198281931.
    16. Walter Bossert & Satya R. Chakravarty & Conchita D'Ambrosio, 2013. "Multidimensional Poverty and Material Deprivation with Discrete Data," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 59(1), pages 29-43, March.
    17. Donaldson, David & Weymark, John A, 1986. "Properties of Fixed-Population Poverty Indices," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 27(3), pages 667-688, October.
    18. Alkire, Sabina & Santos, Maria Emma, 2014. "Measuring Acute Poverty in the Developing World: Robustness and Scope of the Multidimensional Poverty Index," World Development, Elsevier, vol. 59(C), pages 251-274.
    19. Sen, Amartya K, 1976. "Poverty: An Ordinal Approach to Measurement," Econometrica, Econometric Society, vol. 44(2), pages 219-231, March.
    20. Roberto Angulo, 2016. "From Multidimensional Poverty Measurement to Multisector Public Policy for Poverty Reduction: Lessons from the Colombian Case," OPHI Working Papers ophiwp102_1.pdf, Queen Elizabeth House, University of Oxford.
    21. Kai-yuen Tsui, 2002. "Multidimensional poverty indices," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 19(1), pages 69-93.
    22. Clark, Stephen & Hemming, Richard & Ulph, David, 1981. "On Indices for the Measurement of Poverty," Economic Journal, Royal Economic Society, vol. 91(362), pages 515-526, June.
    23. Thon, Dominique, 1979. "On Measuring Poverty," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 25(4), pages 429-439, December.
    24. Serge-Christophe Kolm, 1977. "Multidimensional Egalitarianisms," The Quarterly Journal of Economics, Oxford University Press, vol. 91(1), pages 1-13.
    25. A. Atkinson, 2003. "Multidimensional Deprivation: Contrasting Social Welfare and Counting Approaches," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 1(1), pages 51-65, April.
    26. Shorrocks, Anthony F, 1995. "Revisiting the Sen Poverty Index," Econometrica, Econometric Society, vol. 63(5), pages 1225-1230, September.
    27. Alkire, Sabina & Foster, James & Seth, Suman & Santos, Maria Emma & Roche, Jose Manuel & Ballon, Paola, 2015. "Multidimensional Poverty Measurement and Analysis," OUP Catalogue, Oxford University Press, number 9780199689491.
    Full references (including those not matched with items on IDEAS)

    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Dimensional and Distributional Contributions to Multidimensional Poverty
      by maximorossi in NEP-LTV blog on 2016-07-01 19:51:50

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sabina Alkire and Mauricio Apablaza, 2016. "Multidimensional Poverty in Europe 2006–2012: Illustrating a Methodology," OPHI Working Papers ophiwp074, Queen Elizabeth House, University of Oxford.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:qeh:ophiwp:ophiwp100_2.pdf. 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: (IT Support). General contact details of provider: http://edirc.repec.org/data/qehoxuk.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.