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New multidimensional approaches to poverty measurement in Bosnia and Herzegovina

Author

Listed:
  • Delalić Adela

    (School of Economics and Business, University of Sarajevo, Bosnia and Herzegovina)

  • Somun-Kapetanović Rabija

    (School of Economics and Business, University of Sarajevo, Bosnia and Herzegovina)

  • Resić Emina

    (School of Economics and Business, University of Sarajevo, Bosnia and Herzegovina)

Abstract

Unlike the standard unidimensional poverty indices, based mostly on monetary poverty measures, multidimensional poverty indices may include numerous non-monetary poverty indicators. This study utilized fuzzy and Alkire – Foster (AF) and fuzzy methodology to assess the poverty level in Bosnia and Herzegovina (B&H) and to compare the results with official poverty assessments. In addition to consumption as a monetary measure, we constructed AF and fuzzy indices by including numerous non-monetary measures that indicate housing quality, possession of durable goods and the household structure. AF multidimensional indices for B&H are calculated based on data from Household Budget Surveys (2004, 2007 and 2011) and fuzzy poverty indices are calculated based on data from HBS 2011. This research has found the differences in the values, direction and dynamics between unidimensional and multidimensional approaches to poverty measurement. Authors state that it is not sufficient to base the creation of more efficient social policies and poverty reduction strategies exclusively on unidimensional indices that address just one dimension of poverty.

Suggested Citation

  • Delalić Adela & Somun-Kapetanović Rabija & Resić Emina, 2017. "New multidimensional approaches to poverty measurement in Bosnia and Herzegovina," Croatian Review of Economic, Business and Social Statistics, Sciendo, vol. 3(1), pages 1-15, June.
    • Handle: RePEc:vrs:crebss:v:3:y:2017:i:1:p:1-15:n:1
    DOI: 10.1515/crebss-2017-0001
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    References listed on IDEAS

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    1. Sabina Alkire, Maria Emma Santos, 2010. "Acute Multidimensional Poverty: A New Index for Developing Countries," OPHI Working Papers 38, Queen Elizabeth House, University of Oxford.
    2. Achille Lemmi & Gianni Betti (ed.), 2006. "Fuzzy Set Approach to Multidimensional Poverty Measurement," Economic Studies in Inequality, Social Exclusion, and Well-Being, Springer, number 978-0-387-34251-1, November.
    3. Alkire, Sabina & Foster, James, 2011. "Counting and multidimensional poverty measurement," Journal of Public Economics, Elsevier, vol. 95(7-8), pages 476-487, August.
    4. Joseph Deutsch & Jacques Silber, 2006. "The “Fuzzy Set” Approach to Multidimensional Poverty Analysis: Using the Shapley Decomposition to Analyze the Determinants of Poverty in Israel," Economic Studies in Inequality, Social Exclusion, and Well-Being, in: Achille Lemmi & Gianni Betti (ed.), Fuzzy Set Approach to Multidimensional Poverty Measurement, chapter 8, pages 155-174, Springer.
    5. Michele Costa & Luca De Angelis, 2008. "The Multidimensional Measurement Of Poverty: A Fuzzy Set Approach," Statistica, Department of Statistics, University of Bologna, vol. 68(3), pages 303-319.
    6. Nanak Kakwani & Jacques Silber (ed.), 2008. "Quantitative Approaches to Multidimensional Poverty Measurement," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-58235-4, December.
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