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Ordinal Welfare Comparisons with Multiple Discrete Indicators: A First Order Dominance Approach and Application to Child Poverty

Author

Listed:
  • Channing Arndt
  • Roberta Distante
  • M. Azhar Hussain
  • Lars Peter Østerdal
  • Pham Lan Huong
  • Maimuna Ibraimo

Abstract

We develop an approach for making welfare comparisons between populations with multidimensional discrete well-being indicators observed at the micro level. The approach is rooted in the concept of multidimensional first order dominance. It assumes that, for each indicator, the levels can be ranked ordinally from worse to better, however no assumptions are made about relative importance of any dimension nor about complementarity/substitutability relationships between dimensions.

Suggested Citation

  • Channing Arndt & Roberta Distante & M. Azhar Hussain & Lars Peter Østerdal & Pham Lan Huong & Maimuna Ibraimo, 2012. "Ordinal Welfare Comparisons with Multiple Discrete Indicators: A First Order Dominance Approach and Application to Child Poverty," WIDER Working Paper Series wp-2012-036, World Institute for Development Economic Research (UNU-WIDER).
  • Handle: RePEc:unu:wpaper:wp-2012-036
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    References listed on IDEAS

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    1. Keetie Roelen & Franziska Gassmann & Chris Neubourg, 2010. "Child Poverty in Vietnam: Providing Insights Using a Country-Specific and Multidimensional Model," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 98(1), pages 129-145, August.
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    3. Grimm, Michael & Gräb, Johannes, 2007. "Robust Multiperiod Poverty Comparisons," Proceedings of the German Development Economics Conference, Göttingen 2007 8, Verein für Socialpolitik, Research Committee Development Economics.
    4. Nicolas Gravel & Abhiroop Mukhopadhyay, 2010. "Is India better off today than 15 years ago? A robust multidimensional answer," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 8(2), pages 173-195, June.
    5. Ian Crawford, 2005. "A nonparametric test of stochastic dominance in multivariate distributions," School of Economics Discussion Papers 1205, School of Economics, University of Surrey.
    6. Vijay S. Bawa & Eric B. Lindenberg & Lawrence C. Rafsky, 1979. "An Efficient Algorithm to Determine Stochastic Dominance Admissible Sets," Management Science, INFORMS, vol. 25(7), pages 609-622, July.
    7. Østerdal, Lars Peter, 2010. "The mass transfer approach to multivariate discrete first order stochastic dominance: Direct proof and implications," Journal of Mathematical Economics, Elsevier, vol. 46(6), pages 1222-1228, November.
    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. Bourguignon, Francois, 1989. "Family size and social utility : Income distribution dominance criteria," Journal of Econometrics, Elsevier, vol. 42(1), pages 67-80, September.
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    12. Sen, Amartya, 1973. "On Economic Inequality," OUP Catalogue, Oxford University Press, number 9780198281931.
    13. Muller, Christophe & Trannoy, Alain, 2011. "A dominance approach to the appraisal of the distribution of well-being across countries," Journal of Public Economics, Elsevier, vol. 95(3), pages 239-246.
    14. Alkire, Sabina, 2008. "Choosing Dimensions: The Capability Approach and Multidimensional Poverty," MPRA Paper 8862, University Library of Munich, Germany.
    15. David Levhari & Jacob Paroush & Bezalel Peleg, 1975. "Efficiency Analysis for Multivariate Distributions," Review of Economic Studies, Oxford University Press, vol. 42(1), pages 87-91.
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    Keywords

    Household survey; Microeconomics; Population; Measurement (Poverty); Public welfare;

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