Robust Pro-Poorest Poverty Reduction with Counting Measures: The Anonymous Case

30 Pages Posted: 23 Dec 2015

See all articles by José V. Gallegos

José V. Gallegos

Universidad de Piura

Gaston Yalonetzky

University of Leeds - Leeds University Business School (LUBS); Leeds University Business School (LUBS) - Division of Economics

Francisco Azpitarte

Melbourne Institute of Applied Economic and Social Research & Brotherhood of St Laurence

Date Written: November 26, 2015

Abstract

When measuring poverty with counting measures, it is worth inquiring into the conditions prompting poverty reduction which not only reduce the average poverty score further but also decrease deprivation inequality among the poor, thereby emphasizing improvements among the poorest of the poor. For comparisons of cross-sectional datasets of the same society in different periods of time (i.e. an anonymous assessment), the literature offers a second-order dominance condition based on reverse generalized Lorenz curves, whose fulfillment ensures that multidimensional poverty decreases along with a reduction in deprivation inequality for a broad family of inequality-sensitive counting poverty measures. However, the condition holds for a predetermined vector of weights for the poverty dimensions. In this paper we refine this second-order condition in order to obtain necessary and sufficient conditions whose fulfillment ensures that multidimensional poverty reduction is robust to a broad array of weighting vectors and inequality-sensitive poverty measures. We illustrate these methods with an application to multidimensional poverty in Peru.

Keywords: Pro-poorest poverty reduction, multidimensional poverty, reverse generalized Lorenz curve

JEL Classification: I32

Suggested Citation

Gallegos, José V. and Yalonetzky, Gaston and Azpitarte, Francisco, Robust Pro-Poorest Poverty Reduction with Counting Measures: The Anonymous Case (November 26, 2015). Melbourne Institute Working Paper No. 22/15, Available at SSRN: https://ssrn.com/abstract=2701633 or http://dx.doi.org/10.2139/ssrn.2701633

José V. Gallegos

Universidad de Piura ( email )

Piura
Peru

Gaston Yalonetzky

University of Leeds - Leeds University Business School (LUBS) ( email )

Leeds LS2 9JT
United Kingdom

Leeds University Business School (LUBS) - Division of Economics ( email )

Leeds LS2 9JT
United Kingdom

Francisco Azpitarte (Contact Author)

Melbourne Institute of Applied Economic and Social Research & Brotherhood of St Laurence ( email )

Level 5, FBE Building, 111 Barry Street
111 Barry Street, University of Melbourne
Melbourne, 3010
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+61 3 8344 2111 (Fax)

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