Tag Archives: FGT measures

Counting and Multidimensional Poverty Measurement (Revised and Updated)

This paper proposes a new methodology for multidimensional poverty measurement consisting of an identification method ρk that extends the traditional intersection and union approaches, and a class of poverty measures Mα. Our identification step employs two forms of cutoff: one within each dimension to determine whether a person is deprived in that dimension, and a second across dimensions that identifies the poor by ‘counting’ the dimensions in which a person is deprived. The aggregation step employs the FGT measures, appropriately adjusted to account for multidimensionality. The axioms are presented as joint restrictions on identification and the measures, and the methodology satisfies a range of desirable properties including decomposability. The identification method is particularly well suited for use with ordinal data, as is the first of our measures, the adjusted headcount ratio. We present some dominance results and an interpretation of the adjusted headcount ratio as a measure of unfreedom. Examples from the US and Indonesia illustrate our methodology.

Citation: Alkire, S. and Foster, J. (2009). “Counting and Multidimensional Poverty Measurement (revised and updated).” OPHI Working Paper 32, University of Oxford.

Counting and Multidimensional Poverty Measurement (Short Version)

This paper proposes a new methodology for multidimensional poverty measurement consisting of an identification method ρk that extends traditional approaches, and a class of poverty measures Ma that satisfies several desirable properties including decomposability. Our identification step employs two forms of cutoff: one within each dimension and a second across dimensions that identifies the poor by counting their deprivations. We aggregate using Foster-Greer-Thorbecke measures adjusted for multidimensionality. Our adjusted headcount ratio is well suited for use with ordinal data. Examples from Indonesia and the US illustrate our methodology.

Citation: Alkire, S. & Foster, J. (revised in 2009) Counting and multidimensional poverty measurement (short version). OPHI Working Paper 7.5, University of Oxford.

Counting and Multidimensional Poverty Measurement

This paper proposes a new methodology for multidimensional poverty measurement consisting of an identification method ρκ that extends traditional approaches, and a class of poverty measures Mα that satisfies several desirable properties including decomposability. Our identification step employs two forms of cutoff: one within each dimension and a second across dimensions that identifies the poor by counting their deprivations. We aggregate using Foster-Greer-Thorbecke measures adjusted for multidimensionality. Our adjusted headcount ratio is well suited for use with ordinal data. Examples from Indonesia and the US illustrate our methodology.

Citation: Alkire, S. & Foster, J. (2007, revised in 2008). Counting and multidimensional poverty measurement. OPHI Working Paper 7, University of Oxford.