axioms of poverty measures

He argued that poverty indices should satisfy certain ethically defensible criteria or axioms and that the desirability of a poverty measure should be evaluated in terms of these axioms. Axioms, in this case, are mild assumptions on how a poverty measure should behave. Based on "double cut-offs" multidimensional poverty identification method of Alkire and Foster (J Public Econ 95(7-8): 476-487, 2011), this paper proposes a "triple cut-offs" identification method of multidimensional poverty . Healthy poverty and capacity poverty have become key factors affecting the poverty reduction effectiveness. This topic is particularly important in policy work, as the use of different poverty measures may entail contradictory results on poverty levels. The GE measure varies between 0 (perfect equality) and infinity. DECOMPOSABLE POVERTY MEASURES 763 TRANSFERSENSITIVITY AXIOM: If a transfer t > 0 of income takes place from a poor household with income y, to a poor household with income yi + d (d > 0), then the magnitude of the increase in poverty must be smaller for larger y, [lo, p. 4391. He constructed an axiomatic framework for poverty measures, including two "dominance" axioms: a monotonicity axiom (that requires poverty to rise when a poor income falls), and a transfer axiom (that requires poverty to rise when a poor person transfers income to a richer poor person). The measure should be consistent with the direction of change in poverty, in that a positive (negative) rate of pro-poor growth implies a reduction (increase) in poverty.4 Axiom 2. L, Gini G, Theil's Entropy T, Shutz Coef S Poverty Measurement: The Axioms Further Poverty Measure Axioms Absolute Poverty Measures More Absolute Poverty Measures Relative Poverty Measures Rather than think about an absolute poverty cut-off "z" we may substitute some other measure which is "relative" to the . A poverty measure, argued by Sen, should satisfy certain properties or axioms and the desirability of a poverty measure should be evaluated by these axioms. In his seminal work on poverty, Sen (1976) suggested a measure of poverty. DECOMPOSABLE POVERTY MEASURES 763 TRANSFER SENSITIVITY AXIOM: If a transfer t > 0 of income takes place from a poor household with income yi to a poor household with income yi + d (d > 0), then the magnitude of the increase in poverty must be smaller for larger yi [10, p. 439]. Video 2: Unidimensional Poverty Measures' fulfillment of axioms and dominance Properties of well-known unidimensional poverty measures and policy implications. INTRODUCTION In the measurement of poverty, Sen (1976) proposed the "normalization axiom" which has been used as the basis for deriving several alternative measures of poverty including that of Sen (Anand 1977, Kakwani 1980 and Clark, Hemming and Ulph 1981). According to Sen, any poverty index must satisfy the following criteria. The commonly used counting measures violate the strong transfer axiom, which requires regressive transfers to be unambiguously poverty increasing, and they are also invariant to changes in the distribution of a given set of deprivations among the poor. Axiom 1. the axioms of poverty literature and propose a set of axioms that the complementary poverty measures should satisfy. Chart and Diagram Slides for PowerPoint - Beautifully designed chart and diagram s for PowerPoint with visually stunning graphics and animation effects. Its distinguishing characteristic is the attempt to define measures of poverty which evaluate alternative situations consistent with a set of axioms taken over from welfare theory.' The purpose of this section is to discuss to what extent the Prospect Theory based poverty measures that are calculated for equivalent income in 5 fulfill the desirable criteria for poverty measures proposed by Sen and also discussed by, for example, Sen and Foster . While the first axiom implies the measurement is concerned with only the proportion of people that lives under the poverty line, the second axiom is the quality that the measure does not change when the population is replicated. A poverty measure, argued by Sen, should satisfy certain properties or axioms and the desirability of a poverty measure should be evaluated by these axioms. A case in point is afforded by the status of a 'focus axiom' in the measurement of poverty. Unidimensional stochastic dominance (dominance conditions and their connection to poverty measures). However, these poverty measures violate some basic properties or axioms proposed by Sen (1976), like the monotonicity axiom and the transfer axiom. The measurement of inequality is a highly controversial one. This has long been considered a desirable feature of a poverty measure. Click to see full answer. It can also be seen that the head-count ratio, as a measure of poverty violates these axioms. TRANSFER AXIOM:Given other things, a pure transfer of incomefrom a poor household to any other household that is richer must increase the poverty measure . This paper presents axiomatic arguments to make the case for distribution-sensitive multidimensional poverty measures. An appropriate technique to evaluate poverty in such a situation is fuzzy set theory. The paper shows that poverty measures that are inclusive of all deprivations (union-based) and allow for the extra burden of multiple deprivations are distribution-sensitive in two respects: first, they satisfy the strong transfer axiom, and second, they are sensitive to Sen (1976) conceptualized poverty measurement as composed of two steps: identification, by which the population is dichotomized into the poor - those who fall below the poverty line, . The axiomatic characterization of this class re-tains the usual axioms of focus and subgroup consistency and it intro-duces additional principles for interpersonal poverty comparisons and It implies that if poverty increases in any subgroup of the population, and does not change for any other group, then aggregate poverty . Unidimensional Poverty Measurement: Axioms, Measures, and Dominance. Oxford Poverty & Human Development Initiative (OPHI) income or consumption expenditures) has been widely incorporated as a desirable property for poverty indices, we are aware of no poverty measures that are sensitive to inequality of opportunity. For instance, a society will not be said to be less poor . Much of this literature has been stimulated by the contribution of Sen (I976). Video 2: Unidimensional Poverty Measures' fulfillment of axioms and dominance Therefore, if we evaluate anti-poverty policies according to their ability to reduce this type . Poverty has spatial, demographic, and asset holding dimensions. Axiom 1. Section 5 raises the issue of the dispersion of deprivations across individuals to motivate the cross-dimensional convexity axiom introduced in section 6 which also proposes the new class of multidimensional poverty measures and discusses their properties. desirable axioms that an income poverty measure ought to satisfy (see Foster, 2006 for a recent survey and Foster and Sen, 1997 for a thorough overview). Poverty is no longer a problem of income alone. Nor do standard poverty measures necessarily reflect any progress in raising the floor. One popular class of poverty measures is the Foster-Greer-Thorbecke (FGT) due to Foster et al (1984), which is considered simple, and satisfies desirable axiomatic properties (Foster et al, 2010 . In France, charity associations say government measures to quell the pandemic have created a situation where students can't find work and sometimes don't have enough to eat. Section 4 gives concluding remarks. The Measures of energy poverty should therefore allow for the calculation of the three 'i's, and the above mentioned measures can be adapted accordingly (Heindl, 2015). For all. second step in evaluating poverty - the aggregation step. poverty measure depends only on the distance between his income and the poverty line and not on the number of individuals that lie between him and the poverty line. Literature has many measures Anand and Sen (1997), Tsui (2002), Atkinson (2003), Bourguignon and Chakravarty (2003), Deutsch and Silber (2005), Chakravarty and Silber (2008), Maasoumi and Lugo (2008) Problems Inapplicable to ordinal variables Found in multidimensional poverty Or methods extreme Union identification Violates basic axioms learning poverty severity) which can address some of the short comesdiscussed . In the measurement of poverty, Sen (1976) proposed the "normalization axiom" which has been used as the basis for deriving several alternative measures of poverty including that of Sen (Anand 1977, Kakwani 1980 and Clark, Hemming and Ulph 1981). For all x, y 2 X and z 2 S, if n(x) = n(y) and xPz = yPz, then P(x; z) = P(y; z). With this axiom, any increase in the level of a non-meagre attribute does not change the value of the poverty measure, even if this increase is in favor of a poor individual. The measure of poverty implicit in the measure of pro-poor growth should satisfy the standard axioms for poverty measurement. Axioms of a complementary poverty measure . 'Focus' requires that a measure of poverty ought to be sensitive only to changes in the It is not so clear, however, that measures of energy poverty ought to also satisfy the (various) axioms of poverty measurement discussed in the literature on poverty. axioms. for union-based multidimensional poverty measures. In document The poor and the public : an exploration of synergies between black theology and public theologies (Page 66-69) In this section, certain measures that have been undertaken to eradicate poverty are discussed. He demonstrated . The measurement of poverty is based on the notion of poverty line, which is constructed from monetary estimates of minimum needs. The measure should be consistent with the direction of change in poverty, in that a positive (negative) rate of pro-poor growth implies a reduction (increase) in poverty.4 Axiom 2. Focus requires that a measure of poverty ought to be sensitive only to changes in the income-distribution of the poor population of any society. This paper also develops ordinal analogues of the core axioms from the literature on economic poverty, and demonstrates that the ordinal FGT measures indeed satisfy these core axioms. Absolute inequality depends on the absolute differences in levels of living rather than relative differences. sensitive multidimensional poverty measures which also satisfy a range of other desirable axioms proposed in the literature, without imposing any additional data requirements for practical applications.7 A property of multidimensional poverty measures that has been found to be attractive from a Measures Undertaken to Eradicate Poverty. The measure satisfies key axioms for robust poverty measures such as monotonicity, transfer, and transfer sensitivity (Sen 1983), However, the properties satisfied by P2 and the rest of the FGT class set it apart from its predecessor and gave it broader applicability.10 2.2 Axioms Axioms for poverty measures can be usefully grouped under three general headings: invariance, dominance, and subgroup axioms [58]. This makes our aversion to poverty clear but one should be careful as this measure does not respect the transfer axiom. The axioms are presented as joint restrictions on identification and the measures, and the methodology satisfies a range of desirable properties including decomposability. 2. Robustness Analysis & Statistical Inference Multidimensional Poverty Dynamics with Time Series and Panel Data Population Subgroup Decomposition and Dimensional Breakdown. At the aggregate level we show that the multi-period poverty measures de-ned by our axioms can be decomposed into two terms (Lemma 3). Sen's Axioms. These two axioms, together with a continuity axiom, lead uniquely to the measure suggested by Sen (1976). subgroup additivity axiom, meaning that aggregate poverty is the sum of all individual levels of poverty in the population. Headcount index (H) Proportion of population living below poverty line; satisfies focus and scale invariance axioms. The first — the official poverty measure first published in the mid-1960s — is based on cash resources. from the general definition of a poverty measure by using a version of Sen's rank order axiom, and a substantially weaker form of his normalization axiom. FGT measures retain the simplicity of the classical FGT measures and also many of their desirable features, including additive decomposability. The multidimensional view of well-being is receiving growing attention, both in academic research and policy-oriented analysis. All of the indicators that are mentioned above satisfy these two axioms. 70+ Antenna TV Channels. This module will help users choose among the many poverty measures described in other modules. This paper develops an axiomatic approach to the measurement of multidimensional poverty in a fuzzy set up. Income Focus (Axiom IF). On the other hand, Sen poverty index and all its variants that rely on rank-order weighting are not decomposable. DECOMPOSITION OF NORMALIZATION AXIOM IN THE MEASUREMENT OF POVERTY: A COMMENT 1. A poverty measure, argued by Sen, should satisfy certain properties or axioms and the desirability of a poverty measure should be evaluated by these axioms. The measure satisfies key axioms for robust poverty measures such as monotonicity, transfer, and transfer sensitivity (Sen 1983), Ethically flexible measures of poverty / 77 where E is a particular numerical representation of W. E is homogeneous of degree one. Using Current Population Survey data and an improved measure of poverty, the Census Bureau's Supplemental Poverty Measure, we reassess long-term trends in poverty for children in unmarried parent families—those led by single mothers, those led by single fathers, and those led by cohabiting couples—as opposed to their counterparts in . These two facts suggest an ongoing tension between the desire for simplicity and transparency (1)Weak Population Focus: Poverty in a population is not reduced by changes in the non-poor population which leave the distribution of goods amongst the poor unchanged.ix The next section will consider why the main indexes in the literature violate this axiom if they are interpreted as measures of poverty in a population. It is not so clear, however, that measures of energy poverty ought to also satisfy the (various) axioms of poverty measurement discussed in the literature on poverty. 1976. array of basic axioms, while certain subfamilies satisfy the multiperiod analogs of (income) monotonicity and the transfer principle. Although a higher consumption floor (ceteris paribus) automatically reduces any measure of consumption poverty satisfying the monotonicity axiom, none of the standard axioms of poverty measurement attach any explicit weight to the level of the floor. The measures include economic growth, direct aid, improving the social environment . Participants below the poverty threshold had a higher prevalence for poly, any, and single tobacco use (4.1% vs. 3.6%, 16.7% vs. 3.6%, 12.5% vs. 11.9%), respectively, although differences were not statistically significant when compared to those above the poverty threshold. During the last two decades, many researchers have adopted the axiomatic approach pioneered by Sen to propose additional axioms and develop alternative poverty measures. INCOME SHORT-FALL AND POVERTY Definition of the different types of axioms (properties) for poverty measures. 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. Sen [15, 16] has formulated two axioms for a poverty measure to satisfy: MONOTONICITY AXIOM:Given other things, a reduction in the income of a poor household must increase the poverty measure. 4 the floor.7 Those living at the floor will have the highest weight in the subset of poverty measures that penalize inequality among the poor though even then there is no assurance that adequate weight will be attached to progress in raising the floor.8 Indeed, in most measures the weight on the individual poverty measure is the corresponding population density, which may Discuss Amartya Sen's poverty measure. During the last two decades, many researchers have adopted the axiomatic approach pioneered by Sen to propose additional axioms and develop alternative poverty measures. Focus, Monotonicity, Scale invariance, Transfer. The -rst term is population average of an increasing function of the levels of the welfare attribute. has by now accumulated on what he refers to as 'economic' measures of poverty. Of the four measures described below, the one that satisfies all of the desirable axioms above--the Watts measure--turns out to be the least used. The Theil inequality index is measured as follows: TUP program. In practice, most poverty indices advanced in the literature satisfy an income-focus but not a population-focus axiom. France David Vives Jan 25, 2022 Share Facebook Twitter Copy Link Comments. The second section Poverty gap index (PG) Mean distance below poverty line among all population as a proportion of the line; satisfies all but transfer axiom. AXIOM 1.2 (Transfer): Given other things, a pure transfer of income from a person below the poverty line to anyone who is richer must increase the poverty measure. below the poverty line must increase the poverty measure. The measure of poverty implicit in the measure of pro-poor growth should satisfy the standard axioms for poverty measurement. The expression distribution sensitive is widely used in the poverty measurement literature to refer to a measure of poverty which satisfies the Transfer Axiom - see Foster and Shorrocks (Reference Foster and Shorrocks 1988), Ravallion (Reference Ravallion 1996), Zheng (Reference Zheng 1994, Reference Zheng 1997, Reference Zheng 2000). dividual multi-period measures that satisfy our axioms. Introduction to the two steps in poverty measurement: identification and aggregation. 2 Measuring poverty: Sen's axioms Focus: the poverty index depends only on the incomes of the poor Monotonicity:a reduction in the income of a poor person must increase the index Weak Transfer Axiom:redistribution from a person below the poverty line to someone better off, leaving the number of persons During the last two decades, many researchers have adopted the axiomatic approach pioneered by Sen to propose additional axioms and develop alternative poverty measures. Foster, Greer, and orbecke, 1984) build on some form of focus axiom, whereby outcomes above z are censored down to the poverty line itself, since the poverty of the poor is not meant to be alleviated by the richness of others. the substantive meaning of particular measures could be compromised in the absence of a clear and coherent conceptualization of the phenomenon being measured. This measure extends the unidimensional poverty measure of Foster, Greer, and Thorbecke (1984) to situations with multiple outcomes. Rigorous discussion on a fuzzy membership function that determines the poverty position of a person in a dimension is presented. The Foster-Greer-Thorbecke index satisfies the monotonicity axiom (i.e., a Poverty is highly correlated with the lack of education, and there is an intimate connection between nutrition and poverty. Weak monotonicity axiom: A reduction in a poor man's income holding others constant must increase the poverty index. Another measure of inequality is the strongly relative poverty measure in which the poverty line is set at a constant proportion of the mean. Video 1: Unidimensional Poverty Measures and their axioms. Moreover, new domi- Our new CrystalGraphics Chart and Diagram Slides for PowerPoint is a collection of over 1000 impressively designed data-driven chart and editable diagram s guaranteed to impress any audience. In a recent note, Basu (1985) provided an axiomatic justification of the "normalization axiom" by means of three elementary axioms. Section 3 compares two measures of poverty: IGR and poverty gap ratio (PGR) and shows how PGR is a substitute to HCR, whereas IGR is a complement. main properties and axioms of the learning poverty measure and proposes a few complementary aggregations, such as a learning poverty gap and learning poverty a distributionalsensitive gap- (or . "Other things remaining the same, a transfer of income from a The simple headcount index is the most used poverty measure, but it violates several important axioms. add up individual measures of poverty that are computed as a con-vex transform of the fraction of the poverty line vector to which the agent is indi⁄erent. Abstract. It is well known that all measures of aggregate poverty (e.g. Student Poverty Rises Under COVID Measures in France. Anonymity (Axiom A). While P does not satisfy this axiom, it can be generalized to a class which contains This measure extends the unidimensional poverty measure of Foster, Greer, and Thorbecke (1984) to situations with multiple outcomes. Definition of the different types of axioms (properties) for poverty measures. sarily satisfy both axioms 15.1 and 15.2"' The axioms are two requirements for a poverty measure, originally formu- lated by Sen in [4]: Axiom 15.1. In 1976, Sen proposed an axiomatic approach to poverty measures. But whereas sensitivity to inequality of outcomes (e.g. Coef of Var C, Log St. Dev. Another inequality measure that satisfies many of the above axioms is the Theil index (Theil, 1967), which belongs to the entropy measures from information theory (Shannon, 1948). Axioms of Poverty Measures Suggested by Nobel laureate Amartya Sen नोबेल अर्थशास्त्री अमर्त्य सेन . Each chronic poverty measure (and its transient dual) satisfies decomposability, thus allowing the consistent some of the axioms for inequality measures are direct counterparts of corresponding axioms for poverty measurement: while the same nomenclature will be adopted for both sets of axioms, the inequality-related axioms will be differentiated from the poverty related ones by means of a starred designation (so that, for instance, axiom a* will stand … the transfer axiom in deriving the new poverty measure (they will be satisfied anyway, implied by a more demanding axiomatic structure), the motivation of our search for a new measure can be understood by noticing the violation of these elementary conditions by the poverty measures currently in wide use. Focus axiom: The poverty index should be independent of the non poor population. Audio Associated measures of transient poverty are defined to evaluate poverty that is shorter in duration. dividual level. During the last two decades, many researchers have adopted the axiomatic approach pioneered by Sen to propose additional axioms and develop alternative poverty measures. measures which, crucially, "satisfy the transfer sensitivity axiom" (p.763). TUP program. Axioms for poverty measures. Letting A > 0 be the mean of the distribution y, the AKS inequality index is defined We cannot unambiguously argue that poverty headcount in 2005 (a year of more widespread drought) was higher than poverty headcount in 2002, but the poverty gap and squared poverty gap measures were both higher in the second period. Up to now, proposed poverty measures are based on a strong version of the focus axiom that introduces a distinction between meagre and non-meagre at-tributes. As the use of different poverty measures and policy implications reduce this.... Dominance conditions and their connection to poverty clear but one should be careful as this measure extends the unidimensional measure! 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This type anti-poverty policies according to their ability to reduce this type nutrition and poverty aid, the... ; s income holding others constant must increase the poverty index measures may entail contradictory results poverty! Important in policy work, as a measure of poverty violates these axioms are not.... An increasing function of the different types of axioms ( properties ) for poverty:. Definition of the levels of living rather than relative differences ( dominance conditions and their connection to measures! Inequality depends on the other hand, Sen ( 1976 ) suggested a of... These axioms measures of poverty implicit in the measure of pro-poor growth should satisfy the standard axioms for measures... Vives Jan 25, 2022 Share Facebook Twitter Copy Link Comments the implications reduction effectiveness the measures economic! Seen that the head-count ratio, as the use of different poverty measures will help users choose the. 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