Identifying the Poor: A Multiple Indicator Approach

29 Pages Posted: 9 Apr 2008

See all articles by Ramses H. Abul Naga

Ramses H. Abul Naga

University of Bath - Department of Economics

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Date Written: June 1994

Abstract

The standard approach to the study of poverty assumes the existence of an ideal variable that captures the extent of deprivation. In this paper we postulate that poverty is involved with many dimensions. We use a latent variable framework to predict the extent of an individual's hardship as a function ?i =ax1i + bx2i +..., where the x's are indicators of i's income status, yi, and the latter variable is not observed.

Suggested Citation

Abul Naga, Ramses H., Identifying the Poor: A Multiple Indicator Approach (June 1994). LSE STICERD Research Paper No. 09. Available at SSRN: https://ssrn.com/abstract=1117709

Ramses H. Abul Naga (Contact Author)

University of Bath - Department of Economics ( email )

Claverton Down
Bath, BA2 7AY
United Kingdom

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