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Australian Poverty Quantified by a Family‐Based Poverty Index

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  • DAVID T. JOHNSON
  • PETER B. DIXON

Abstract

We postulate a family‐based poverty index (JD) possessing focus, symmetry, monotonicity and decomposability properties commonly required of individualistic indexes. JD also satisfies reformulated distribution and transfer sensitivity axioms which take account of differences between families in their sizes and poverty lines. We introduce a new axiom, substitution sensitivity, which is satisfied by JD but not by the well‐known FGT index. Using JD, we describe Australian poverty in the 1980s. We find that head‐count ratios and average income gaps dominate the explanation of differences in poverty across family types and across time. Differences in the distributions of poor incomes make minor contributions.

Suggested Citation

  • David T. Johnson & Peter B. Dixon, 1999. "Australian Poverty Quantified by a Family‐Based Poverty Index," The Economic Record, The Economic Society of Australia, vol. 75(2), pages 103-114, June.
    • Handle: RePEc:bla:ecorec:v:75:y:1999:i:2:p:103-114
    DOI: 10.1111/j.1475-4932.1999.tb02439.x
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    References listed on IDEAS

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    1. Brian Parmenter, 2004. "Distinguished Fellow of the Economic Society of Australia, 2003: Peter Dixon," The Economic Record, The Economic Society of Australia, vol. 80(249), pages 141-144, June.

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