Social Policy

Analysis of Multidimensional Poverty: Theory and Case by Louis-Marie Asselin

By Louis-Marie Asselin

Poverty is a paradoxical country. Recognizable within the eld for any delicate observer who travels in distant rural parts and concrete slums and meets marginalized humans in a given society, poverty nonetheless is still a problem to conceptual formalization and to size that's in line with such formalization. The research of poverty is multidisciplinary. It is going from ethics to economics, from political technology to human biology, and any form of dimension rests on arithmetic. additionally, poverty is multifaceted in accordance with the categories of deprivation, and it's also gender and age speci c. A vector of variables is needed, which increases a considerable challenge for person and workforce comparisons essential to fairness research. Multidimension- ity additionally complicates the aggregation essential to practice the ef ciency research of guidelines. with regards to source of revenue poverty, those difficulties, fairness and ef ciency, have bene ted from very signi cant growth within the eld of economics. related achievements are nonetheless to come back within the region of multidimensional poverty. inside this basic historical past, this e-book has a really modest and narrow-scoped goal. It proposes an operational technique for measuring multidimensional poverty, self reliant from the conceptual starting place, the dimensions and the qualitative in addition to the quantitative nature of the first symptoms used to explain the poverty of somebody, a loved ones or a sociodemographic entity.

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Piron (1990), pp. 75–79, and Greenacre M. and J. Blasius (1994), p. 14. 34 3 Composite Indicator of Poverty cation of poverty determinants, associated with poverty types. In fact, this property, much more than the distributional equivalence one, is the main advantage of MCA for applying factorial concepts and methods to multidimensional poverty analysis. To sum up, due to using the χ2 metric, the difference between MCA and PCA shows up particularly in two properties which seem highly relevant for the poverty meaning of the numerical results.

2 presents a quick review of the main methodologies used to build a composite indicator of poverty (CIP). 3). 4 develops the MCA technique and illustrates it with a numerical case study on Vietnam. 1 Individual and Population Poverty Comparisons For discussion, it is important to clarify the terminology regarding the three concepts of poverty indicator, poverty measure, and poverty index. 1 Iik is then a poverty indicator value. The value Iik can be transformed as gk (Iik ), with the function gk , to better reflect a poverty concept relative to indicator Ik .

In fact, the composite poverty measure proposed by Bourguignon and Chakravarty is a CES function of the shortfalls (poverty gaps) in each of the primary poverty indicators. Since the direct focus of this approach is on a poverty index, it is called a one-step approach to multidimensional poverty indices. It should be obvious, on the other hand, that solving in a first step the problem of building a numerical composite indicator of poverty opens the way to computing a composite poverty index based on the composite indicator, relying then on the univariate theory of poverty indices.

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