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Poverty Measurement in the Presence of a 'Group-Affiliation' Externality

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  • S. Subramanian

Abstract

This paper considers the implications for poverty measurement of the observed fact that any individual's level of deprivation is a function not only of his own income, but of the general level of prosperity of the group to which he is affiliated. Individual deprivation functions are specialized to a form that reflects this 'group-affiliation' externality, and the resulting poverty measure is studied with respect to its properties, and its implications for poverty rankings. Mainstream approaches to measuring deprivation tend to neglect group-related externalities in favour of a certain thorough-going 'individualism'. This paper is a preliminary attempt at filling this gap.

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  • S. Subramanian, 2009. "Poverty Measurement in the Presence of a 'Group-Affiliation' Externality," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 10(1), pages 63-76.
    • Handle: RePEc:taf:jhudca:v:10:y:2009:i:1:p:63-76
    DOI: 10.1080/14649880802675168
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    References listed on IDEAS

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    1. S. Subramanian, 2008. "Externality and Literacy: A Note," Journal of Development Studies, Taylor & Francis Journals, vol. 44(6), pages 839-848.
    2. Indraneel Dasgupta & Ravi Kanbur, 2005. "Community and anti-poverty targeting," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 3(3), pages 281-302, December.
    3. Glenn C. Loury, 2000. "Social Exclusion and Ethnic Groups: The Challenge to Economics," Boston University - Institute for Economic Development 106, Boston University, Institute for Economic Development.
    4. M. Majumdar & S. Subramanian, 2001. "Capability Failure and Group Disparities : Some Evidence from India for the 1980s," Journal of Development Studies, Taylor & Francis Journals, vol. 37(5), pages 104-140.
    5. Basu, Kaushik & Foster, James E, 1998. "On Measuring Literacy," Economic Journal, Royal Economic Society, vol. 108(451), pages 1733-1749, November.
    6. Subramanian,, 2006. "Rights, Deprivation, and Disparity: Essays in Concepts and Measurement," OUP Catalogue, Oxford University Press, number 9780195676433.
    7. Takayama, Noriyuki, 1979. "Poverty, Income Inequality, and Their Measures: Professor Sen's Axiomatic Approach Reconsidered," Econometrica, Econometric Society, vol. 47(3), pages 747-759, May.
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