Multidimensional Poverty Measurement and Analysis: Chapter 3 – Overview of Methods for Multidimensional Poverty Assessment

Alkire, S., Foster, J. E., Seth, S., Santos, M. E., Roche, J. M., and Ballon, P. (2015). Multidimensional Poverty Measurement and Analysis, Oxford: Oxford University Press, ch. 3.

OPHI Working Paper No. 84

76 Pages Posted: 16 Feb 2015

See all articles by Sabina Alkire

Sabina Alkire

Oxford Poverty & Human Development Initiative

James E. Foster

George Washington University

Suman Seth

University of Leeds - Economics Division; University of Oxford - Oxford Poverty & Human Development Initiative

Maria Emma Santos

CONICET-UNS/IIESS and OPHI

Jose Roche

Oxford Poverty & Human Development Initiative

Paola Ballon

University of Oxford; Oxford Poverty and Human Development Initiative

Date Written: January 15, 2015

Abstract

This chapter presents a constructive survey of the major existing methods for measuring multidimensional poverty. Many measures were motivated by the basic needs approach, the capability approach, and the social inclusion approach among others. This chapter reviews Dashboards, the composite indices approach, Venn diagrams, the dominance approach, statistical approaches, fuzzy sets, and the axiomatic approach. The first two methods (dashboard and composite indices) are implemented using aggregate data from different sources ignoring the joint distribution of deprivations The other methods reflect the joint distribution and are implemented using data in which information on each dimension is available for each unit of analysis. After outlining each method, we provide a critical evaluation by discussing its advantages and disadvantages.

Keywords: Multidimensional poverty measures, dashboard approach, composite indices, Venn diagrams, dominance approach, statistical approaches, fuzzy sets approach, axiomatic approach.

JEL Classification: B40, I32

Suggested Citation

Alkire, Sabina and Foster, James E. and Seth, Suman and Santos, Maria Emma and Roche, Jose and Ballon, Paola, Multidimensional Poverty Measurement and Analysis: Chapter 3 – Overview of Methods for Multidimensional Poverty Assessment (January 15, 2015). Alkire, S., Foster, J. E., Seth, S., Santos, M. E., Roche, J. M., and Ballon, P. (2015). Multidimensional Poverty Measurement and Analysis, Oxford: Oxford University Press, ch. 3.. Available at SSRN: https://ssrn.com/abstract=2564782

Sabina Alkire

Oxford Poverty & Human Development Initiative ( email )

Queen Elizabeth House
3 Mansfield Road
Oxford, Oxfordshire OX1 3TB
United Kingdom

James E. Foster

George Washington University ( email )

2121 I Street NW
Washington, DC 20052
United States

Suman Seth

University of Leeds - Economics Division ( email )

Leeds LS2 9JT
United Kingdom
+44(0)1133432629 (Phone)

HOME PAGE: http://business.leeds.ac.uk/about-us/our-people/staff-directory/profile/suman-seth/

University of Oxford - Oxford Poverty & Human Development Initiative

3 Mansfield Road
Queen Elizabeth House
Oxford, Oxfordshire OX1 3TB
United Kingdom
+44 1865 618643 (Phone)

HOME PAGE: http://ophi.org.uk/about/people/research-associates-and-advisors/suman-seth/

Maria Emma Santos

CONICET-UNS/IIESS and OPHI ( email )

12 de Octubre y San Juan
Bahia Blanca, Buenos Aires 8000
Argentina

Jose Roche

Oxford Poverty & Human Development Initiative ( email )

Queen Elizabeth House (QEH)
3 Mansfield Road
Oxford, OX1 3TB
United Kingdom

Paola Ballon (Contact Author)

University of Oxford ( email )

South Parks Road
Oxford, Oxforshire OX1 3QY
United Kingdom

HOME PAGE: http://oxford.academia.edu/PaolaBallon

Oxford Poverty and Human Development Initiative ( email )

University of Oxford
3 Mansfield Road
Oxford, OX1 3TB
United Kingdom

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