Multidimensional Poverty Measurement and Analysis: Chapter 5 – the Alkire-Foster Counting Methodology

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. 5.

Leeds University Business School Working Paper No. 15-01

54 Pages Posted: 16 Feb 2015 Last revised: 28 Nov 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 provides a systematic overview of the Alkire-Foster multidimensional measurement methodology with an emphasis on the Adjusted Headcount Ratio. The chapter is divided into seven sections. The first shows how this measure combines the practical appeal of the counting tradition with the rigor of the axiomatic one. The second sets out the identification of who is poor using the dual-cutoff approach, and the third outlines the aggregation method used to construct the Adjusted Headcount Ratio. In the fourth, we take stock and present the main distinctive characteristics of the Adjusted Headcount Ratio, whereas the fifth section presents its useful, consistent partial indices or components. To illustrate, we present a case study using the global Multidimensional Poverty Index (MPI) in the sixth section. The final section presents the members of the AF class of measures that can be constructed in less common situations where data are cardinal.

Keywords: Alkire-Foster poverty measures, Adjusted Headcount Ratio, Multidimensional Poverty Index, dual cutoff identification, intensity of poverty

JEL Classification: I00, I30, 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 5 – the Alkire-Foster Counting Methodology (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. 5., Leeds University Business School Working Paper No. 15-01, Available at SSRN: https://ssrn.com/abstract=2564787

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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