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Dynamic Extensions of Multidimensional Poverty Measures with Selected Empirical Applications

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Household Behaviour, Prices, and Welfare

Part of the book series: Themes in Economics ((THIE))

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Abstract

A key limitation of the multidimensional deprivation literature discussed in the previous chapter has been the static nature of the measures which do not distinguish between transitory and permanent deprivation in particular dimensions.

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Notes

  1. 1.

    See Bossert et al. (2010) for a similar distinction in the unidimensional context.

  2. 2.

    As in JS and CD, this means that properties focusing on the depth of deprivation in a particular dimension as discussed in Bourguignon and Chakravarty (2003) will not be satisfied by the measures we adopt here. Instead, we emphasise the desirable properties across (as opposed to within) dimensions, as well as across time.

  3. 3.

    Given that \( \mu_{i} \) takes as its input the (T × K) matrix \( \varvec{D}_{\varvec{i}} \), there can in principle be a maximum of \( 2^{(T*K)} \) different types of individual scores, one for each possible permutation of the individual deprivation profile.

  4. 4.

    Equation (11.4) moves beyond a simple counting approach since it uses information on permutations of deprivation across the time dimension, and not simply combinations.

  5. 5.

    The three parameters used in this study,\( \alpha ,\beta ,{\text{and}}\;\gamma \), correspond to the same parameters in Gradin et al.’s (2011) unidimensional model, except that \( \alpha \) only applies to deprivation across time in their specification, but \( \alpha \) applies to both time and dimensions here.

  6. 6.

    This variable is constructed for each individual using the individual’s household ‘financial year disposable household income’ in the HILDA survey which was then adjusted with the OECD equivalence scale of \( \sqrt n \) where n is the number of members in the household to which that individual belongs.

  7. 7.

    When \( \alpha = 0 \) the deprivation ratio can be interpreted as the fraction of the population that belong to the lowest income decile for at least one out of the eight periods.

  8. 8.

    In Australia, the ‘Indigenous’ population refers to the Aboriginal and Torres Strait Islander people who are the original inhabitants of the land.

  9. 9.

    As stated on the LSAC website www.growingupinaustralia.gov.au.

  10. 10.

    As stated on the LSIC website www.dss.gov.au/about-the-department/national-centre-for-longitudinal-studies/overview-of-footprints-in-time-the-longitudinal-study-of-indigenous-children-lsic.

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  1. Department of Economics, Monash University, Clayton, VIC, Australia

    Ranjan Ray

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Ray, R. (2018). Dynamic Extensions of Multidimensional Poverty Measures with Selected Empirical Applications. In: Household Behaviour, Prices, and Welfare. Themes in Economics. Springer, Singapore. https://doi.org/10.1007/978-981-13-1930-3_11

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  • DOI: https://doi.org/10.1007/978-981-13-1930-3_11

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