Multi-Dimensional Analysis of Poverty in Ghana Using Fuzzy Sets Theory

PEP Working Paper Serie 2007-21

37 Pages Posted: 4 May 2018 Last revised: 16 Jul 2018

Multiple version iconThere are 2 versions of this paper

Date Written: July 1, 2007

Abstract

The paper studies the multidimensional aspects of poverty and living conditions in Ghana. The aim is to fill the vacuum that has been left by traditional uni-dimensional measures of deprivation based on poverty lines, exclusively estimated on the basis of monetary variables such as income or consumption expenditure. It combines monetary and non-monetary, and qualitative and quantitative indicators, including housing conditions, the possession of durable goods, equivalent disposable income, and equivalent expenditure, with a number of composite human welfare measures. The study employs the fuzzy-set theoretic framework to compare levels of deprivation in Ghana over time using micro data from the last two rounds of the Ghana Living Standard Surveys (1991/1992 and 1998/1999). The estimation results of the membership functions, depicting the levels of deprivation for the various categories of deprivation indicators, show a composite deprivation degree of 0.2137 for the whole country in 1998/99 as compared to 0.2123 in 1991/92. This deprivation trend reveals that poverty levels had scarcely changed in Ghana. In fact, it even rose slightly during the nineties, contrary to the uni-dimensional analytical GLSS 4 report of an overall broadly favourable trend in poverty in Ghana during the 1990s.

Keywords: Ghana, Fuzzy Set, Multi-Dimensional Poverty, Composite Deprivation or Poverty Index

Suggested Citation

Appiah-Kubi, Kojo and Amanning-Ampomah, Edward and Ahortor, Christian, Multi-Dimensional Analysis of Poverty in Ghana Using Fuzzy Sets Theory (July 1, 2007). PEP Working Paper Serie 2007-21. Available at SSRN: https://ssrn.com/abstract=3171635 or http://dx.doi.org/10.2139/ssrn.3171635

Kojo Appiah-Kubi (Contact Author)

University of Ghana ( email )

PO Box 25
Legon, Accra LG
Ghana

Edward Amanning-Ampomah

University of Ghana ( email )

PO Box 25
Legon, Accra LG
Ghana

Christian Ahortor

University of Ghana ( email )

PO Box 25
Legon, Accra LG
Ghana

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