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Hybrid measures of multidimensional poverty

Author

Listed:
  • Tomson Ogwang

    (Brock University)

  • Jean-François Lamarche

    (Brock University)

Abstract

In this paper, we propose a hybrid Watts-MPI multidimensional poverty measure that combines the multidimensional Watts poverty index (MWPI), which can accommodate continuous poverty dimensions, with the multidimensional poverty index (MPI), which can accommodate binary poverty dimensions. Unlike the stand-alone MPI that entails total loss of dimension-specific information on both poverty intensity with respect to shortfall and inequality, the proposed hybrid Watts-MPI measure entails only partial loss of such information since poverty intensity and inequality estimates can still be obtained for the continuous poverty dimensions included in the hybrid measure. The hybrid Watts-MPI also specializes to the stand-alone MWPI and MPI when all the poverty dimensions are continuous and binary, respectively. Furthermore, formation of the hybrid Watts-MPI does not entail loss of normative properties by either the constituent MWPI or MPI. The seemingly unrelated regression approach to the estimation of the hybrid Watts-MPI is described and an empirical example demonstrating its efficacy is provided.

Suggested Citation

  • Tomson Ogwang & Jean-François Lamarche, 2024. "Hybrid measures of multidimensional poverty," Empirical Economics, Springer, vol. 67(3), pages 1211-1233, September.
    • Handle: RePEc:spr:empeco:v:67:y:2024:i:3:d:10.1007_s00181-024-02581-4
    DOI: 10.1007/s00181-024-02581-4
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    More about this item

    Keywords

    Multidimensional Watts poverty index; Multidimensional poverty index; Hybrid Watts-MPI; Dual cut-off method; Seemingly unrelated regression; Simulation;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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