scholarly journals A New Generalized Variance Approach for Measuring Multidimensional Inequality and Poverty

2021 ◽  
Author(s):  
Ottó Hajdu
Keyword(s):  
Covariance Matrix ◽  
Composite Index ◽  
Multidimensional Poverty ◽  
Poverty Measurement ◽  
Multivariate Statistical ◽  
Generalized Variance ◽  
Multidimensional Inequality ◽  
Conventional Literature ◽  
Poverty Indicators ◽  
Special Complex

AbstractThe paper suggests a new generalized variance concept for measuring multidimensional inequality of a stratified society, based on multivariate statistical methods, where the members of society form a cloud in the oblique space of dimensions of inequality, such as income, expenditure and property. The cloud presents the multidimensional inequality capsulized in the cloud. The goal is to condense all the inequality information embodied by the cloud into a composite compact metric characterizing both the shape and the inner structure of the cloud. Contrary to the conventional literature that considers multidimensionality as a unidimensional weighted combination of the dimensions, our new composite index measures the inequality of the configuration of the points in the cloud. Our aim is twofold. First, we introduce the Inequality Covariance Matrix (ICM) assigned to the cloud, with elements measuring the correlations among dimensions. Having ICM, we propose the Generalized Variance (GV) of ICM to measure the composite Generalized Variance Inequality (GVI) level. Second, to evaluate the stratum-specific structure of the overall inequality, we suggest a new two-stage procedure. In the first stage, we divide the total GVI into between-groups and within-groups effects. Then, in the second stage the contributions of the strata to the within-groups inequality and, the contributions of the dimensions to the between-groups inequality are calculated. This GVI approach is sensitive to the correlation system, decomposable into stratum effects and, the number of dimensions is not limited. Moreover, including the log-dimensions in the analysis, GVI yields an Entropy Covariance Matrix giving a new Generalized Variance Entropy index. Finally, the GVI of censored poverty indicators means multidimensional poverty measurement. This special complex task is not yet solved in the traditional literature so far.

scholarly journals Deprivasi Utama Kemiskinan Multidimensi Antarprovinsi di Indonesia

2019 ◽  
Vol 19 (2) ◽  
pp. 160-172
Author(s):  
Bagus Sumargo ◽  
Naomi Miduk M. Simanjuntak
Keyword(s):  
Poverty Alleviation ◽  
Multidimensional Poverty ◽  
Poverty Measurement ◽  
Living Standards ◽  
Three Dimensions ◽  
School Problems ◽  
Monetary Approach ◽  
Economic Survey ◽  
Poverty Indicators ◽  
Relief Program

So far poverty alleviation policies are still oriented to the monetary approach, while poverty is multidimensional, this means that multidimensional poverty is defined as the condition of the lack of all existing poverty indicators. This study finds the main deprivation of poverty indicators in each province in Indonesia, so that poverty alleviation programs can be directed and more in line with the main deprivation needs of poverty in an area. Using the data of the National Socio-Economic Survey (Susenas 2014) and Alkire-Foster’s multidimensional poverty measurement method, and with 12 indicators in three dimensions (health, education, and living standards), found that a priority scale of poverty alleviation assistance required by all provinces in Indonesia based on deprivation primarily a relief program t hat deals with old school problems and immunizations, except in Maluku province is a birth attendant and in Papua is a literacy  issue. ------------------------------ Sejauh ini kebijakan pengentasan kemiskinan masih berorientasi pada pendekatan moneter, sementara kemiskinan bersifat multidimensi, ini berarti bahwa kemiskinan multidimensi didefinisikan sebagai kondisi kurangnya semua indikator kemiskinan yang ada. Studi ini menemukan deprivasi utama indikator kemiskinan di setiap provinsi di Indonesia, sehingga program pengentasan kemiskinan dapat diarahkan dan lebih sesuai dengan kebutuhan deprivasi utama kemiskinan di suatu daerah. Berdasarkan data hasil Survei Sosial Ekonomi Nasional (Susenas) 2014 dan metode pengukuran kemiskinan multidimensi Alkire-Foster, serta 12 indikator dalam tiga dimensi (pendidikan, kesehatan, dan standar hidup), maka ditemukan skala prioritas bantuan pengentasan kemiskinan yang dibutuhkan di seluruh provinsi di Indonesia berdasarkan deprivasi utamanya, yakni program bantuan untuk mengatasi permasalahan lama sekolah dan imunisasi, kecuali di Provinsi Maluku adalah persoalan penolong kelahiran dan di Papua adalah persoalan melek huruf.

scholarly journals New multidimensional approaches to poverty measurement in Bosnia and Herzegovina

2017 ◽  
Vol 3 (1) ◽  
pp. 1-15
Author(s):  
Adela Delalić ◽  
Rabija Somun-Kapetanović ◽  
Emina Resić
Keyword(s):  
Bosnia And Herzegovina ◽  
Durable Goods ◽  
Poverty Reduction ◽  
Multidimensional Poverty ◽  
Housing Quality ◽  
Poverty Measurement ◽  
Poverty Level ◽  
Poverty Measures ◽  
Reduction Strategies ◽  
Poverty Indicators

AbstractUnlike the standard unidimensional poverty indices, based mostly on monetary poverty measures, multidimensional poverty indices may include numerous non-monetary poverty indicators. This study utilized fuzzy and Alkire – Foster (AF) and fuzzy methodology to assess the poverty level in Bosnia and Herzegovina (B&H) and to compare the results with official poverty assessments. In addition to consumption as a monetary measure, we constructed AF and fuzzy indices by including numerous non-monetary measures that indicate housing quality, possession of durable goods and the household structure. AF multidimensional indices for B&H are calculated based on data from Household Budget Surveys (2004, 2007 and 2011) and fuzzy poverty indices are calculated based on data from HBS 2011. This research has found the differences in the values, direction and dynamics between unidimensional and multidimensional approaches to poverty measurement. Authors state that it is not sufficient to base the creation of more efficient social policies and poverty reduction strategies exclusively on unidimensional indices that address just one dimension of poverty.

scholarly journals Measuring Vulnerability to Multidimensional Poverty

2019 ◽  
Vol 148 (1) ◽  
pp. 67-103 ◽  
Author(s):  
Mauricio Gallardo
Keyword(s):  
Multidimensional Poverty ◽  
Risk Behaviour ◽  
Poverty Measurement ◽  
Multidimensional Space ◽  
Poverty Index ◽  
Cross Sectional ◽  
Multidimensional Poverty Index ◽  
Wide Range ◽  
Vulnerability Indicators ◽  
Vulnerability To Poverty

Abstract A method to measure vulnerability to multidimensional poverty is proposed under a mean–risk behaviour approach. We extend the unidimensional downside mean–semideviation measurement of vulnerability to poverty towards the multidimensional space by incorporating this approach into Alkire and Foster’s multidimensional counting framework. The new approach is called the vulnerability to multidimensional poverty index (VMPI), alluding to the fact that it can be used to assess vulnerability to poverty measured by the multidimensional poverty index (MPI). The proposed family of vulnerability indicators can be estimated using cross-sectional data and can include both binary and metric welfare indicators. It is flexible enough to be applied for measuring vulnerability in a wide range of MPI designs, including the Global MPI. An empirical application of the VMPI and its related indicators is illustrated using the official MPI of Chile as the reference poverty measurement. The estimates are performed using the National Socioeconomic Characterisation Survey (CASEN) for the year 2017.

scholarly journals Contrasting Monetary and Multidimensional Poverty Measures in a Low-Income Sub-Saharan African Country

2020 ◽  
Vol 151 (2) ◽  
pp. 547-574 ◽  
Author(s):  
Lukas Salecker ◽  
Anar K. Ahmadov ◽  
Leyla Karimli
Keyword(s):  
Risk Factors ◽  
Low Income ◽  
Multidimensional Poverty ◽  
Poverty Measurement ◽  
Sub Saharan Africa ◽  
Analytical Strategy ◽  
Poverty Risk ◽  
Two Measures ◽  
Sub Saharan ◽  
Over Time

AbstractDespite significant progress in poverty measurement, few studies have undertaken an in-depth comparison of monetary and multidimensional measures in the context of low-income countries and fewer still in Sub-Saharan Africa. Yet the differences can be particularly consequential in these settings. We address this gap by applying a distinct analytical strategy to the case of Rwanda. Using data from two waves of the Rwandan Integrated Household Living Conditions Survey, we combine comparing poverty rates cross-sectionally and over time, examining the overlaps and differences in the two measures, investigating poverty rates within population sub-groups, and estimating several statistical models to assess the differences between the two measures in identifying poverty risk factors. We find that using a monetary measure alone does not capture high incidence of multidimensional poverty in both waves, that it is possible to be multidimensional poor without being monetary poor, and that using a monetary measure alone overlooks significant change in multidimensional poverty over time. The two measures also differ in which poverty risk factors they put emphasis on. Relying only on monetary measures in low-income sub-Saharan Africa can send inaccurate signals to policymakers regarding the optimal design of social policies as well as monitoring their effectiveness.

scholarly journals Multidimensional Poverty Measurement in Pakistan :Time Series Trends and Breakdown

2012 ◽  
Vol 51 (4II) ◽  
pp. 493-504 ◽  
Author(s):  
Taseer Salahuddin ◽  
Asad Zaman
Keyword(s):  
Time Series ◽  
Recent Literature ◽  
Caloric Intake ◽  
Multidimensional Poverty ◽  
Poverty Measurement ◽  
New Approach ◽  
Rational Agents ◽  
Multidimensional Poverty Measurement ◽  
The Poor ◽  
The Right

In the recent literature, consensus has emerged that poverty is a multidimensional phenomenon; see Alkire and Santos (2010) for a review of the major arguments. Nonetheless, the most widely used measures of poverty remain unidimensional, being based on income or caloric intake cutoffs. The logic for the use of income based measures was that it was only lack of income which led to deprivation—with sufficient income; rational agents would automatically eliminate deprivations in all dimensions in the right sequence of priorities. However, careful studies like Thorbecke (2005) and Banerjee and Duflo (2006) show that this does not happen. Even while malnourished and underfed, the poor spend significant portions of their budgets on festivals, weddings, alcohol, tobacco and other non-essential items. The move from abstract theoretical speculation based on mathematical models of human behaviour to experiments and observations of actual behaviour has led to dramatic changes in the understanding of poverty and how to alleviate it. Some of these insights are encapsulated in a new approach to poverty advocated by Banerjee and Duflo (2011).

scholarly journals Nepalese initiatives in poverty research: moving from uni-to-multidimensional concepts and measurements

2018 ◽  
Vol 18 (17) ◽  
pp. 91-104
Author(s):  
Keshab Prasad Adhikari
Keyword(s):  
Human Development ◽  
Three Dimensional ◽  
Multidimensional Poverty ◽  
Policy Option ◽  
Poverty Measurement ◽  
Policy Implications ◽  
Income Poverty ◽  
Deprivation Score ◽  
Quality Of Life Index ◽  
Methodological Aspects

The aged long conventional unidimensional definition and measurement of poverty ‘lack of money’ in most countries is being replaced by the multidimensional approach and methodology. The launching of MPI report in 2018 implied Nepal also officially to adopt this in national poverty measurement policy strategy. This paper is aimed at to sensitize methodological aspects of MPI among academic and policy implications in Nepalese context. Debate on multidimensional poverty research in addressing rampant poverty dates back the advent of basic-needs and the physical quality of life index approaches of 1970s but both failed to establish a valid and reliable deprivation score to divide population as poor and non-poor like in income line approach. Human development index gave basis to rank countries into four groups as very high, high, medium and low level of human development. However it could not offer a precise deprivation score to divide population into-two as in absolute deprivation and non-deprivation as well as population in borderline of deprivation as alternatives of income poverty. It is the Alkire and Foster’s (2007 and 2010) MPI methodology/approach of OPHI and successively adopted in human development reports of UNDP, aggressively being adopted as alternatives of conventional income line methods of poverty measurement and targeting policies. Three dimensional and ten indicators equally weighted MPI based on the same conceptual groundings of ‘capability, wellbeing and functions’ of Sen are taken as reliable alternative to the conventional income approach of poverty measurement. With the official release of national MPI study report in January 2018, Nepal adopted MPI in its policy option in targeting population living in multiple web of poverty and their targeting. The study found poverty and deprivation studied from MPI perspective is vital to attain multiple goals of 2030 SDGs.

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