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On multidimensional indices of poverty / Martin Ravallion

World Bank Open Knowledge Repository (formerly "World Bank E-Library Publications") Available online

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Format:
Book
Government document
Author/Creator:
Ravallion, Martin
Contributor:
Ravallion, Martin
Series:
Policy research working papers.
World Bank e-Library.
Language:
English
Subjects (All):
Achieving Shared Growth.
Debt Markets.
Domestic Market.
Economic Change.
Economic Reform.
Investment Criteria.
Market Access.
Markets and Market Access.
Poverty Reduction.
Rural Poverty Reduction.
Services & Transfers to Poor.
Local Subjects:
Achieving Shared Growth.
Debt Markets.
Domestic Market.
Economic Change.
Economic Reform.
Investment Criteria.
Market Access.
Markets and Market Access.
Poverty Reduction.
Rural Poverty Reduction.
Services & Transfers to Poor.
Physical Description:
1 online resource (22 pages)
Place of Publication:
Washington, D.C., The World Bank, 2011
System Details:
data file
Summary:
There has been a growing interest in what have come to be termed "multidimensional indices of poverty." Advocates for these new indices correctly point out that command over market goods is not all that matters to peoples' well-being, and that other factors need to be considered when quantifying the extent of poverty and informing policy making for fighting poverty. However, the author argues that there are two poorly understood issues in assessing these indices. First, does one believe that any single index can ever be a sufficient statistic for poverty assessments? Second, when aggregation is called for, should it be done in the space of "attainments," using prices when appropriate, or that of "deprivations," using weights set by the analyst? The paper argues that the goal for future poverty monitoring efforts should be to develop a credible set of multiple indices, spanning the dimensions of poverty most relevant to a specific setting, rather than a single multidimensional index. When weights are needed, they shouldn't be set solely by an analyst measuring poverty. Rather, they should be, as much as possible, consistent with well-informed choices made by poor people.

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