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2006, Social Choice and Welfare
If the absolute number of poor people goes up, but the fraction of people in poverty comes down, has poverty gone up or gone down? The economist's instinct, framed by population replication axioms that undergird standard measures of poverty, is to say that in this case poverty has gone down. But this goes against the instinct of those who work directly with the poor, for whom the absolute numbers notion makes more sense as they cope with more poor on the streets or in the soup kitchens. This paper attempts to put these two conceptions of poverty into a common framework. Specifically, it presents an axiomatic development of a family of poverty measures without a population replication axiom. This family has an intuitive link to standard measures, but it also allows one or other of "the absolute numbers" or the "fraction in poverty" conception to be given greater weight by the choice of relevant parameters. We hope that this family will prove useful in empirical and policy work where it is important to give both views of poverty-the economist's and the practitioner's-their due.
2002
If the absolute number of poor people goes up, but the fraction of people in poverty comes down, has poverty gone up or gone down? The economist’s instinct, framed by population replication axioms that undergird standard measures of poverty, is to say that in this case poverty has gone down. But this goes against the instinct of those who work directly with the poor, for whom the absolute numbers notion makes more sense as they cope with more poor on the streets or in the soup kitchens. This paper attempts to put these two conceptions of poverty into a common framework. Specifically, it presents an axiomatic development of a family of poverty measures without a population replication axiom. This family has an intuitive link to standard measures, but it also allows one or other of “the absolute numbers” or the “fraction in poverty” conception to be given greater weight by the choice of relevant parameters. We hope that this family will prove useful in empirical and policy work where ...
NCDS Working Paper 71, 2018
Since the 1976 seminal paper by Amartya Sen on axiomatic characterization of poverty measure, researchers have come out with poverty measures with better properties than the simplest measure, the head count ratio (HCR). However, attempt to substitute the HCR has not succeeded given that the HCR remains till date as the dominant headline indicator in policy, media, and political discourse, and for public at large. This note argues that the part of the problem lies in the fundamental intension to ‘substitute’ the HCR with better indicators. We propose to depart from this conventional approach in indicator research and attempt for indicators which could complement. This approach can lead to having measures exclusively for the poor complimenting the overall poverty measures that are meant for the entire population. The note shows indicators like Income gap ratio, which fails on most counts as an overall poverty measure, turns out to be a fairly good measure of poverty of the poor.
Journal of Development Economics, 2012
Journal of Economics and Sustainable Development, 2013
The focus of the international community on poverty reduction has been gaining momentum since the early 1990s. The World Summit for Social Development in Copenhagen (2005) and the subsequent Millennium Summit in New York (2000) provided considerable political will for the reduction of poverty. The debate has been how a multi-dimensional subject like poverty can be measured statistically. Should we continue the single measure using consumption or accept a composite measure; and how would this measure be amenable to quantitative manipulation. This paper traced this methodological debate and offers the contribution that the intensity of poverty can be better measured using a composite income or expenditure metrics that captures expenditure on the individual's basic necessities of life such as food, health, clothing shelter, education etc. This is because changes in income or expenditure have multiplier effects that influence all aspects of the quality of human life, both at the micro and macro levels. Many of the known indices of poverty, such as those mentioned above, are directly or indirectly dependent on income. Even qualitative indicators such as dignity, power and security are better assured to people with higher income to spare.
Global Justice Theory Practice Rhetoric, 2013
Introducing the Volume The volume Debates on the Measurement of Global Poverty, edited by Anand, Segal and Stiglitz, is an impressive collection of essays that captures the most important methodological aspects of global poverty measurement. With a range of approaches to measurement, it assesses whether poverty has declined in the course of the last decade's efforts towards achieving the Millennium Development Goals (MDGs). In the introduction, the editors emphasize that global poverty is not only higher on the political agenda now, but that we also know more about it than ever before, due to intensified collection and analysis of data. Their motivation for collecting the 15 essays, which discuss the ins and outs of poverty measurement, goes beyond academic interest: With the introduction of the MDGs, it matters tremendously, from a policy perspective, whether or not we are likely to reach the first MDG of halving poverty by 2015 (in comparison to 1990 levels). To address this and other questions, the volume includes essays by scholars and policy researchers within international organizations (IOs), who have developed a range of methodological conceptions on the measurement of global poverty. Poverty measurement is not merely a technical matter, and the volume addresses the major disagreements and contentions surrounding it. The debate focuses primarily on whether poverty has indeed been decreasing to the extent that World Bank studies suggest. The World Bank's policy researchers assert that more than half a billion people have escaped at least the most miserable state of absolute poverty, which they define as an income at or below 1.25 US$ a day in 2005 prices. 1 Reddy and Pogge (chapter 3) have strong doubts that such a positive scenario is justified, whereas Bhalla (chapter 4) argues in favor of a different measurement method, according to which poverty has never been as
RePEc: Research Papers in Economics, 2012
The emerging scope of international development has seen an increased focus since the Cold War, on poverty reduction across developing countries. With this, newly formed concepts of poverty have entered the discourse alongside attempts to produce statistical results using measurements of poverty, to contextualize new definitions, goals and designated outcomes. Conventional methods of poverty have thus arisen and produced varied methodologies, results and implications. This essay explores some of these main methods, analysing their weaknesses and resulting biases. Throughout the essay, a running critique will emphasise the foundational problem familiar to a range of development areas, indeed not just poverty reduction. Namely that analysts all too often assume, simplify and homogenise key concepts at the root of developmental issues, in particular poverty, those affected by poverty and its causes. A caution toward categorization will propose a lens of critique over many poverty measurements, suggesting that by creating simplistic structures of which to categorize people and poverty within, we risk reducing and homogenising complex, relative and rooted realities behind why poverty exists and who these people are. A critique within itself, this also sources the common problems found in our ability to measure poverty. These discourses surrounding poverty and its measurement are vital to development, as attempts to define and measure poverty have policy implications such as resource allocation, which can greatly affect people – from the marginalised to those inflicted by any form of inequality, communities, politics, local and global interests and likewise media portrayals.
2008
I am submitting comments on behalf of the National Center for Children in Poverty (NCCP) to express support for the ideas presented in the draft legislation, the "Measuring American Poverty Act." The proposal addresses a number of issues I raised in testimony given a year ago at this subcommittee's hearing on "Measuring Poverty in America" (Cauthen 2007). In brief, I argued that: n Because poverty exacts such a high toll on our society, it is critical that we measure it in a meaningful way so that we can address it and measure the degree to which our anti-poverty policies are successful. n The National Academy of Sciences' (NAS) 1995 recommendations for improving the official poverty measure offer the most promising-and efficacious-approach to creating a more accurate measure of income poverty. n In a wealthy, advanced industrial society such as ours, it is imperative that we supplement measures of income poverty with additional indicators of the health and well-being of our nation's citizens, especially our youngest.
2004
The objective of this paper is to review a number of issues related to poverty, while taking stock of the ongoing research. Most of the remaining unresolved issues in poverty analysis are related directly or indirectly to the dynamics of poverty. Before the development community can become more successful in designing and implementing poverty-alleviation strategies, within the context of growth, we need to understand better the conditions under which some households remain permanently (chronically) poor and how others move in and out of poverty. In what follows we review the state of the art under a number of interrelated headings: (1) Chronic vs. transient poverty;
en.scientificcommons.org
IVIE working papers offer in advance the results of economic research under way in order to encourage a discussion process before sending them to scientific journals for their final publication.
1996
The aim of this paper is twofold. The first is to illustrate that a poverty index can be derived from a decomposition of an appropriate inequality index. The advantage of decomposing an inequality index is that the decomposition supplies additional information that is useful for poverty measurement. The second purpose is to illustrate the kind of policy analysis that can be performed with a decomposed inequality index by decomposing the Gini coefficient into Sen's poverty index and other components. The methodology suggests an answer to the following question: Assume that a tax has been imposed on an expenditure item or an income source, what will be the impact on the components of the inequality index? The analysis is performed with data from Romania. D 2002 Published by Elsevier Science B.V. 0176-2680/02/$ -see front matter D 2002 Published by Elsevier Science B.V. PII: S 0 1 7 6 -2 6 8 0 ( 0 1 ) 0 0 0 6 9 -6 www.elsevier.com/locate/econbase *
IDS Bulletin, 1994
2012
The present paper is a selective overview, very considerably based on work in which the author himself has been involved, of the difficulties which can arise in the measurement of poverty and inequality when one compares populations of differing size. The paper begins with certain problems attending the measurement of poverty when the overall population size is fixed but the numbers of the poor are permitted to vary: one discovers a certain commonality of outcomes between Derek Parfit’s quest for a satisfactory theory of wellbeing and the economist’s quest for a satisfactory measure of poverty. Complications arising from both the poverty and inequality rankings of distributions when the aggregate size of the population is allowed to vary are also investigated. It is suggested in the paper that, from the perspectives of both logical consistency and ethical appeal, there are problems involved in variable population comparisons of poverty and inequality which deserve to be taken note o...
Review of Income and Wealth, 1995
We provide an alternative axiomatization of Sen's (1976) poverty measure. We derive the measure from the general definition of a poverty measure by using a version of Sen's rank order axiom, and a substantially weaker form of his normalization axiom. These two axioms, ...
Journal of European Social Policy, 2006
Field Actions Science Reports the Journal of Field Actions, 2012
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