squared poverty gap index

1 Recommendation. The Squared Poverty Gap Index determines the degree of poverty for a given area. Poverty Gap and Poverty Severity Index The poverty gap index captures the depth of poverty as a percentage of shortfall from the poverty line. Objectives: This study was set to identify the determinants of poverty in Kenya. The squared poverty gap index is a measure of the degree of poverty in an area, weighting households by their distance below the poverty line. The consumption-based measures show a decline over 2000-2011. The following 99 files are in this category, out of 99 total. poverty gap ratio—rather than the total poverty gap (and likewise for the squared poverty gap). Socioeconomic Data and Applications Center (sedac)A Data Center in NASA's Earth Observing System Data and Information System (EOSDIS) — Hosted by CIESIN at Columbia University . The measure is sensitive to the depth of poverty: if the income of the third person decreases one unit such that , the squared gap vector becomes , increasing the aggregate poverty level to ). This study focuses on analysing the linkages between output growth, employment and poverty, at both the macro and micro levels. In this sense, it is, without doubt, the most appropriate measure of income poverty. Bangladesh Extreme Poverty Gap Index (5457361275).jpg. Answer. CHAPTER . Kenya, poverty continues to be a challenge with an average of 45.9 per cent poverty rate reported in 2005. one and a half billion. For more information and methodology, please see . poverty numbers rise, conditions have indeed worsened (and conversely, when poverty measures fall, that progress has been made). More than one-fifth of the world's poor live in India alone. HCR or poverty ratio (P0), poverty gap index (P1) and the squared poverty gap (P2). Appendix 5: Poverty Gap Index (Poverty Depth) in Jamaica by Region (2001-2012) Appendix 6: Squared Poverty Gap Index (Poverty Severity) in Jamaica by Region (2001-2012) Appendix 7: Prevalence of Poverty in Jamaica by Sex (1990-2012) Appendix 8: Prevalence of Poverty and Food Poverty by Sex of Household Head (1990-2012) The squared poverty gap index (sometimes referred to as the poverty severity index) is obtained by computing the square of the poverty gap index, which puts more weight on the very poor. Divide each one (the sum of g^0, sum of g^1 and sum of g^2 separately) by the total number of individuals in the sample or population. The initial data came from tabular data from several different sources. Poverty gap at $1.90 a day (2011 PPP) (%) World Bank, Development Research Group. Sen Index of Poverty. At the macro level, the linkage between poverty and output growth is conceptualised in terms of the average productivity Click here https://bit.ly/2wJs0SV to Download our Android APP to have access to 1000's of #Smart_Courses covering length and breadth of almost all competitiv. If poverty means more than just the weight of a wallet, the world's poor may be more numerous than previously believed. Box 2.1 FGT measures of poverty !e poverty gap index is equivalent to the total poverty gap (which can be thought of as the minimum amount of resources needed to eradicate poverty through perfectly-targeted transfers [Ravallion, 1992]) divided by the country's population and . This measure is a member of the FGT (Foster, Using the poverty headcount is intuitive. This method squares the poverty gap for each individual/household, and thus puts more emphasis on observations that fall far short of the poverty line rather than those that are closer. Squared Poverty Gap Index [FGT(2)] FGT(2), or the Squared Poverty Gap Index, measures the severity of poverty for each area. The formula raises the summands to the power alpha, so that FGT0 is the head count index, FGT1 the PGI and FGT2 the squared PGI. Watts' poverty index: Odekon, M. (2006). Squared poverty gap index, also known poverty severity index or , is related to poverty gap index. The poverty gap helps refine the poverty rate by providing an indication of the poverty level in a country. Odekon, M. (2006). The third measure is the squared-poverty-gap index, which provides a measure of the . The mean is based on the entire population treating the nonpoor as having a shortfall of zero, and the shortfall is expressed as a proportion of the poverty line (and then squared). This indicator is measured for the total . It is computed by calculating how far each poor individual is below the official poverty line as a percentage . Squared Poverty Gap Index. However, not all these poverty indicators have the same implications due to the fact that they vary in terms of qualities that they provide as insight. 9. Data for high-income economies are from the Luxembourg Income Study database. The poverty gap squared reflects the severity of poverty by placing more weight on those who are further away from the poverty line. The squared poverty gap index is the measure proposed by Foster et al. This measure reflects the severity of poverty as it is sensitive to inequality amongst the poor. Squared Poverty Gap Index. This measure explicitly takes into account the higher intensity of efforts that are required to address the people who are progressively further . 3.5. Module 4: Poverty measures 2 Topics 1. In this video we have discussed mathematical portion of NTA NET ECONOMICS JUNE 2019 paper.After watching this video you will be able to calculate HEAD COUNT . Question. This problem has been solved! It is based on the head count ratio, poverty gap index and the Gini co . June 13, 2018. . Bangladesh Extreme Poverty Gap Index, First Tier Cities (5457968326 . Poverty is a complex phenomenon and cannot be measured by a single variable. 5.1 Introduction 5.2 Measurement errors 5.3 Equivalence scales 5.4 Robustness of ordinal poverty comparisons Other poverty indicators fall into two categories. THE POVERTY GAP Index is a measure of poverty that calculates both the prevalence and the depth of poverty in a country. The poverty gap is the ratio by which the mean income of the poor falls below the poverty line. It is calculated by averaging the square of the poverty gap ratio. The number of people in the world who are absolutely poor is closest to. The dependent variable is a measure of poverty - the FGT class of poverty indices including the head count ratio, the poverty gap ratio and the poverty gap squared.18 The explanatory variables include state per capita income, the Gini coefficient or ratio of the share of the top 1% in total income to that of the bottom 50%, and their interaction. Poverty Gap Index. In all cases, the term 'adjusted' refers to the fact that all measures incorporate the intensity of multidimensional poverty—which is key to . The poverty data was initially for individ- This scenario is seen in the squared poverty gap (P 2) index as well for both beneficiaries and non-beneficiaries where Squared Poverty Gap Index [FGT(2)] FGT(2), or the Squared Poverty Gap Index, measures the severity of poverty for each area. It is shown that the Laspeyres results in an upward substitution bias, and the bias Data are based on primary household survey data obtained from government statistical agencies and World Bank country departments. living in poverty, or the poverty rate. It is calculated by averaging the square of the poverty gap ratio. A problem with the poverty gap index is that it does not consider redistributions of income within the poor, but this shortcoming is resolved by the squared poverty gap. The sum of these poverty gaps gives the minimum cost of eliminating poverty if transfers were perfectly targeted. Q2. Click to see full answer. The poverty gap index is an improvement over the poverty measure headcount ratio which simply counts all the people below a poverty line, in a given population, and considers them equally poor. Poverty indices are among the few measures of poverty per se. The squared poverty gap index, also known as the poverty severity index (P2), averages the squares of the poverty gaps relative to the poverty line. What's the difference between the Povert Gap Index (PGI) and the Squared Poverty Gap Index (SPGI)? Squared poverty Gap Index. The poverty gap index is the mean distance below the poverty line as a proportion of the poverty line, counting the nonpoor as having zero poverty gap. Albania Poverty Gap Index (5457967718).jpg. Poverty severity index (P 2)²This index is the mean of the squared poverty gap.As individuals in poorer households receive greater weight than less poor individuals, it provides a better measure than the other two indices of the severity of poverty. provided by Ozlor, Datt and . It allows different weights to be put on the income (or expenditure) level of the poorest. Geographically, besides having the highest poverty incidence, the severity of poverty is also the worst in the mountain districts, where the poverty gap index is at 10.1%. The squared poverty gap index is defined as the mean of the squared proportionate poverty gaps. Overall, the squared poverty gap has been decreasing, indicating a decline in severity of poverty amongst the poor. from publication: VULNERABILITY A NEW DIMENSION IN POVERTY: AN EMPIRICAL ANALYSIS . Albania Poverty Gap Index, First Tier Cities (5457361087).jpg. When you do for three indicators will get Poverty index when α = 0, α= 1, and α = 2. averages the squares of the poverty gaps relative to the poverty line. (1984), in which the proportionate poverty Poverty is not a challenge for Indiaonly. Abstract: The paper aims to estimate the Fisher index during the period 1994-1997 to explore how well the Laspeyres index can serve as the cost of living index. Comparative Analysis of the Basic Statistical Characteristics of the Income Distribution for the Polish Households. The poverty thresholds are adjusted each year to reflect changes in the consumer price index. The highest Squared Poverty Gap Index has been reported from Mullaitivu district and lowest from Ampara dis-trict. The first question in judging measures is how well does each index reflect basic properties desirable on philosophical grounds.15 A second important use for poverty measures is descriptive. The formula raises the summands to the power alpha, so that FGT0 is the head count index, FGT1 the PGI and FGT2 the squared PGI. Some of the indicators that are widely employed are the Headcount Ratio, the Income Gap Ratio, the Poverty Gap, the Squared Poverty Gap and the Sen Index. The empirical analysis presented herein is based on the Household Budget Survey (HBS) which is a random sample of the . Before moving on to the section " measures of poverty ", let's us understand the rationale . 3. The second measure is the poverty gap index, which covers this drawback by considering the extent of poverty and expressing it as a percentage of the poverty line. There are very few indicators of poverty per se. Squared poverty gap index. Money value denotes the objective standard of poverty measurement but it alone cannot measure the poverty. poverty lines discussed in the text. Module 4: Poverty measures 2 Topics 1. Poverty indices refer to the three measures of income poverty - the headcount index, the poverty gap index, and the squared poverty gap index. The poverty line is defined as half the median household income of the total population. Poverty line . It is also sensitive to the distribution among the poor: if there is a transfer of $1 from the third person to the second one, so becomes , the squared . The first is PROCAMPO, which pays a fixed amount per acre to farmers who grew basic grains prior to the North American Free Trade Agreement (NAFTA). People who are always poor and those who are usually poor but who may sometimes have a little more money (example: casual workers) are grouped together as the_____ The Squared Poverty Gap Index (SPGI or P2) is the measure for severity of poverty by means of the inequality among poor. Calculate the squared poverty gap index. 4.2.1 Head Count Index 5 4.2.2 Poverty Gap Index (PGI) 6 4.2.3 Squared Poverty Gap Index (SPGI) 7 4.3 Formation of a new sample with double sample size (Pooling of Central and State samples) 7-9 4.3.1 Testing the poolability of central and state sample 8-9 5 Distribution of Sample Size (2011-12) 9-10 Teguh Dartanto. The Squared Poverty Gap Index determines the degree of poverty for a given area. Albania Squared Poverty Gap Index (5457360901).jpg. HCR or poverty ratio (P0), poverty gap index (P1) and the squared poverty gap (P2). Download Table | Poverty, Vulnerability as Expected Poverty, Poverty Gap Index and Squared Poverty Gap Index. Squared poverty gap index. As Table Table4 4 shows, there was a significant main effect for School Trees on math and marginally significant main effect on reading performance, indicating that School Trees contribute uniquely to the prediction of academic achievement even after Neighborhood . World Bank estimates put the population of global poor at 1.44 billion people--but a recent poverty index based on the work of Nobel laureate Amartya Sen, Lamont University Professor and professor of economics and philosophy, raises that number to 1.71 billion. The poverty gap index (P1) measures the extent to which individuals fall below the poverty line (the poverty gaps) as a proportion of the poverty line. The squared poverty gap index places higher weight on those households further away from the poverty line. For example, suppose a country has 10 million citizens, a poverty line of $500 per year, and a poverty gap index of 5%. 36. The formula raises the summands to the power alpha, so that FGT0 is the head count index, FGT1 the PGI and FGT2 the squared PGI. The results below are the estimated FGT poverty measure for a community in 2019; Head Count Index (HCI) = 78 Aggregate Poverty Gap = 26.47 Poverty Gap Index = 0.43 Aggregate Squared Poverty Gap = 13.66 Squared Poverty Gap Index = 0.22 Assume that the total population of the community is 200 and the poverty line of the community is GH¢400, interpret; the Head Count Index the Poverty Gap Index . social protection transfer lifted 2.9 percent poor peo-ple above poverty line monthly real per capita expenditure to set offi- In 2012/ 13, 1.3 million people were in poverty nside this issue 0.17 7% O 0.3 O 0.7 Question : Consider a population of 10 people with the following incomes 1,1,3,3,4,4,4,6,8,10 with a poverty line of 5. THE POVERTY GAP Index is a measure of poverty that calculates both the prevalence and the depth of poverty in a country. It is calculated by averaging the square of the poverty gap ratio. The squared poverty gap index, on the other hand, provides information about whether the assistance reaches the poorest families. The poverty rate is the percentage of people living in poverty. Poverty Gap Index c) Squared . By squaring each poverty gap data, the measure puts more weight the further a poor person's observed income falls below the poverty line. Measures of Poverty, Poverty Gap, Poverty Ratio. I am sure it is understandable. thank you. Socioeconomic Data and Applications Center (sedac)A Data Center in NASA's Earth Observing System Data and Information System (EOSDIS) — Hosted by CIESIN at Columbia University Poverty gap at $1.90 a day (2011 PPP) (%) World Bank, Development Research Group. had the lowest poverty gap index at 3.8% in 2011. Data are based on primary household survey data obtained from government statistical agencies and World Bank country departments. For example, suppose two families--one with a household income equal to 50 percent of the poverty threshold and the other with a higher income equal to 75 percent of poverty--received the same amount of SNAP benefits. Squared poverty gap index, also known poverty severity index or , is related to poverty gap index. from publication: VULNERABILITY A NEW DIMENSION IN POVERTY: AN EMPIRICAL ANALYSIS . This measure is the number of the FGT family of poverty measures. Squared Poverty Gap Index [FGT(2)] FGT(2), or the Squared Poverty Gap Index, measures the severity of poverty for each area. Squared poverty gap (SPG): The mean squared shortfall of income from the poverty line. A higher poverty gap index means that poverty is more severe. While levels of poverty went up during the period of review, the depth and severity of poverty declined poverty gap index and squared poverty gap index), meaning that the poor were better off in 2015/16 than in 2010. So, poverty is a call to action — for the poor and the wealthy alike — a call to change the world so that many more may have enough to eat, adequate shelter, access to education and health, protection from violence, and a voice in what happens in their communities. Poverty index developed by Nobel Laureate Amartya Sen was named as: (a) Poverty gap index (b) Sen's index (c) Squared poverty gap (d) None of the above . Estimates of the squared poverty gaps. These are seen as head count ratio i.e. 5: POVERTY INDEXES--COMPARISON OF MEASURES. Haughton and Khandker This table shows how the poverty gap is computed, divided by the poverty line, squared, and averaged to give P 2, the squared poverty gap index. Cite. The method squares the poverty gap for each individuals and thus plus more emphasis on observations that fall far short of the poverty line rather than those that are closer. By squaring the poverty gap for each household/individual, this measure gives greater weight to those that fall far below the poverty line than those that are closer to it. It was developed by Professor Amartya Sen. 3 For all measures, the greater the index, the worse the poverty. The Sen index (S) is defined by the combination of three distinct measures of poverty: the poverty rate ( ); the poverty gap ratio ( ); and the inequality of incomes among the poor as measured by the Gini index ( ) (Sen 1976. Malaysian Journal of Economic Studies 55 (2): 167-188, 2018 ISSN 1511-4554 Persons with Disabilities (PWD) and Poverty in Indonesia Adrianna Bellaa Teguh Dartantob Universitas Indonesia Abstract: There is an urgent need to provide an evidence-based study to support and mainstream PWD on the development agenda in Indonesia due . The Squared Poverty Gap Index: Mexico has two main government programs that transfer income to rural households. For more information and methodology, please see . Data for high-income economies are from the Luxembourg Income Study database. The Adjusted Squared Poverty Gap Measure reflects the average weighted squared gap or poverty severity experienced by the poor out of the total number of deprivations this society could experience. It indicates the severity of poverty as well as the inequality among the poor. Squared poverty gap index, also known poverty severity index or , is related to poverty gap index. It is computed by calculating how far each poor individual is below the official poverty line as a percentage . This measure is a member of the FGT (Foster, Greer . 1 R-squared for fixed effects; 2 R-squared for both fixed and random effects. Lemma 1 The Gini index of poverty gap ratios of the population, G(xe), is the sum of the Gini index of the average poverty gap ratios between the non-poorandthepoorsub-populations,(1¡H), andthepoverty-rate-weighted Gini index of poverty gap ratio of the poor, HG(xep),as follows: B. Squared poverty gap index, also known poverty severity index or P2, is related to poverty gap index. poverty gap ratio—rather than the total poverty gap (and likewise for the squared poverty gap). The index of poverty depth (P 1) for male beneficiaries is 0.531 which is lower than that of the female 0.791. The squared poverty gap index is one form of a weighted sum of poverty gaps, with the weight proportionate to the poverty gap. Most often, poverty is a situation that people want to escape. In order to view it in ArcMap, I joined this data with a dis-trict-level vector data set. !e poverty gap index is equivalent to the total poverty gap (which can be thought of as the minimum amount of resources needed to eradicate poverty through perfectly-targeted transfers [Ravallion, 1992]) divided by the country's population and . By squaring the poverty gap for each household/individual, this measure gives greater weight to those that fall far below the poverty line than those that are closer to it. true. The SPGI is the self weighted (squared) average of poverty gaps taken as proportions of the value of poverty line of both poor and non-poor assuming zero poverty gaps for the non-poor. It is calculated by averaging the square of the poverty gap ratio. The PGI does not capture differences in the severity of poverty of the poor and ignore Poverty statistics 4.1 Headcount index 4.2 Poverty gap index 4.3 Squared poverty gap index 4.4 Sen index 4.5 Sen-Shorrocks-Thon index 4.6 Time taken to exit 4.7 Other measures. Haughton and Khandker This table shows how the poverty gap is computed, divided by the poverty line, squared, and averaged to give P 2, the squared poverty gap index. These are seen as head count ratio i.e. By squaring each poverty gap data, the measure puts more weight the further a poor person's observed income falls below the poverty line. The poverty severity index is the square of the poverty gap; it puts Download Table | Poverty, Vulnerability as Expected Poverty, Poverty Gap Index and Squared Poverty Gap Index. The poverty-gap index measures the depth of poverty and is defined by the mean distance below the poverty threshold, where the mean is formed over the entire population (the nonpoor are counted as having zero poverty gap). It is the mean of the squared individual poverty gaps relative to the poverty line. Regarding the poverty impact, first, we require that the fiscal system is not poverty increasing.10 In particular, we require that the postfiscal headcount ratio and the squared poverty gap index, both measured with consumable income, should not be higher than the prefiscal one. Poverty gap. Consider the below statements in this regard: 1. Squared Poverty Gap: It is composed of not only the poverty ratio and the poverty gap ratio, but it also captures the consumption distribution of the poor as measured by the coefficient of variation. By squaring the poverty gap for each household/individual, this measure . 1976. poverty impact and two to the impact on tax burdens. 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