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Zbl 0555.90029
Foster, James; Greer, Joel; Thorbecke, Erik
A class of decomposable poverty measures.
(English)
[J] Econometrica 52, 761-766 (1984). ISSN 0012-9682; ISSN 1468-0262

We present a simple, new poverty measure that (i) is additively decomposable with population-share weights, (ii) satisfies the basic properties proposed by {\it A. Sen} [ibid. 44, 219-231 (1976; Zbl 0349.90017)] and (iii) is justified by a relative deprivation concept of poverty. The inequality measure associated with our poverty measure is shown to be the squared coefficient of variation and indeed the poverty measure may be expressed as a combination of this inequality measure, the headcount ratio, and the income-gap ratio in a fashion similar to Sen. We generalize the new poverty measure to a parametric family of measures where the parameter can be interpreted as an indicator of "aversion to poverty." A brief empirical application demonstrates the usefulness of the decomposability property.
MSC 2000:
*91B82 Statistical methods in economics

Keywords: decomposable poverty measures; inequality measure; parametric family of measures

Citations: Zbl 0349.90017

Cited in: Zbl 1127.91048 Zbl 0964.91038

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