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Poverty Indices And Policy Analysis

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  • John Myles
  • Garnett Picot

Abstract

Our aim in this paper is to show how recent developments in the theory and methods of poverty measurement can be applied to provide more accurate descriptions of poverty trends to the typical consumers of these statistics—policy analysts, policy‐makers and their critics. Since Amartya Sen's (1976) classic critique of the “headcount” approach to poverty measurement, considerable progress has been made in constructing axiomatically‐driven measures of “poverty intensity.” These measures have had little influence outside the small world of experts who devised them largely because their mathematical representation has made their meaning obscure to potential users. We focus on the Sen‐Shorrocks‐Thon (SST) index and its elaboration by Osberg and Xu which provides the information contained in the index in a format that is easily accessible within traditional categories of poverty analysis. The SST index and its decomposition provide an analytical framework for discussing the underlying components of aggregate trends that allows for unambiguous answers to the usual policy‐related questions concerning the components of change as well as their magnitude and direction.

Suggested Citation

  • John Myles & Garnett Picot, 2000. "Poverty Indices And Policy Analysis," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 46(2), pages 161-179, June.
  • Handle: RePEc:bla:revinw:v:46:y:2000:i:2:p:161-179
    DOI: 10.1111/j.1475-4991.2000.tb00953.x
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    Cited by:

    1. Kuan Xu & Zhengxi Lin, 2007. "Participation in Employer-sponsored Training in Canada: Role of Firm Characteristics and Worker Attributes," Working Papers daleconwp2007-02, Dalhousie University, Department of Economics.
    2. Bibi, Sami & Duclos, Jean-Yves, 2007. "Equity and policy effectiveness with imperfect targeting," Journal of Development Economics, Elsevier, vol. 83(1), pages 109-140, May.
    3. Sarel van der Walt, 2004. "A Multidimensional Analysis of Poverty in the Eastern Cape Province, South Africa," Working Papers 03/2004, Stellenbosch University, Department of Economics.
    4. Heikki Hiilamo & Reijo Sund & Seppo Sallila, 2004. "Rethinking the Measures of Poverty," LIS Working papers 368, LIS Cross-National Data Center in Luxembourg.
    5. repec:diw:diwwpp:dp352 is not listed on IDEAS
    6. Jean–Yves Duclos & Phillipe Grégoire, 2002. "Absolute and Relative Deprivation and the Measurement of Poverty," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 48(4), pages 471-492, December.
    7. Martina Celidoni, 2015. "Decomposing Vulnerability to Poverty," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 61(1), pages 59-74, March.
    8. David Brady, 2005. "Structural Theory and Relative Poverty in Rich Western Democracies, 1969-2000," LIS Working papers 407, LIS Cross-National Data Center in Luxembourg.
    9. David Brady, 2002. "Rethinking the Sociological Measurement of Poverty," LIS Working papers 264, LIS Cross-National Data Center in Luxembourg.
    10. Gulgun Bayaz Ozturk, 2018. "Anti‐Poverty Effects of In‐Kind Transfers Among Divorced or Separated Women in the United States," Poverty & Public Policy, John Wiley & Sons, vol. 10(1), pages 57-80, March.

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