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The social welfare implications, decomposability, and geometry of the Sen family of poverty indices

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  • Kuan Xu
  • Lars Osberg

Abstract

In this paper, we propose a unified framework for the Sen indices of poverty intensity that shows an explicit connection between the indices and the common underlying social evaluation function. We also identify the common multiplicative decomposition of the indices that allows simple and similar geometric interpretations and easy numerical computation. JEL Classification: C000, H000, O150 Implications en termes de bien‐être collectif, décomposabilité et géométrie de la famille d’indices de pauvretéà la Sen. Dans ce mémoire, les auteurs proposent un cadre d’analyse intégré des indices d’intensité de pauvretéà la Sen qui souligne la relation explicite entre ces indices et la fonction sociale d’évaluation commune qui les soustend. Les auteurs identifient aussi la décomposition multiplicative commune de ces indices qui permet d’en donner des interprétations géométriques simples et idoines et de faire des calculs numériques faciles.

Suggested Citation

  • Kuan Xu & Lars Osberg, 2002. "The social welfare implications, decomposability, and geometry of the Sen family of poverty indices," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 35(1), pages 138-152, February.
  • Handle: RePEc:wly:canjec:v:35:y:2002:i:1:p:138-152
    DOI: 10.1111/1540-5982.00124
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    Cited by:

    1. Stéphane Mussard, 2005. "On Decomposition of the Gini Index of Equality," Cahiers de recherche 05-09, Departement d'économique de l'École de gestion à l'Université de Sherbrooke.
    2. Stephen P. Jenkins & John Micklewright, 2007. "New Directions in the Analysis of Inequality and Poverty," Discussion Papers of DIW Berlin 700, DIW Berlin, German Institute for Economic Research.
    3. Stephen P. Jenkins & Philippe Van Kerm, 2006. "Trends in income inequality, pro-poor income growth, and income mobility," Oxford Economic Papers, Oxford University Press, vol. 58(3), pages 531-548, July.
    4. Kuan Xu, 2007. "U-Statistics and Their Asymptotic Results for Some Inequality and Poverty Measures," Econometric Reviews, Taylor & Francis Journals, vol. 26(5), pages 567-577.
    5. Christophe Muller, 2005. "Poverty and inequality under income and price dispersions," Canadian Journal of Economics, Canadian Economics Association, vol. 38(3), pages 979-998, August.
    6. Lars Osberg, 2001. "Poverty Among Senior Citizens: A Canadian Success Story," The State of Economics in Canada: Festschrift in Honour of David Slater, in: Patrick Grady & Andrew Sharpe (ed.),The State of Economics in Canada: Festschrift in Honour of David Slater, pages 151-181, Centre for the Study of Living Standards.
    7. Oihana Aristondo & Francisco J. Goerlich Gisbert & Casilda Lasso De La Vega, 2015. "A Proposal to Compare Consistently the Inequality Among the Poor," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 61(3), pages 561-572, September.
    8. Mussa, Richard, 2015. "A joint analysis of correlates of poverty intensity, incidence, and gap with application to Malawi," MPRA Paper 65205, University Library of Munich, Germany.
    9. Oihana Aristondo & José Luis García-Lapresta & Casilda Lasso de la Vega & Ricardo Alberto Marques Pereira, 2011. "The Gini index,the dual decomposition of aggregation functions, and the consistent measurement of inequality," Working Papers 203, ECINEQ, Society for the Study of Economic Inequality.
    10. Kuan Xu & Ian Irvine, 2002. "Crime, Punishment and the Measurement of Poverty in the United States, 1979-1997," LIS Working papers 333, LIS Cross-National Data Center in Luxembourg.
    11. Paolo Giordani & Giovanni Giorgi, 2010. "A fuzzy logic approach to poverty analysis based on the Gini and Bonferroni inequality indices," Statistical Methods & Applications, Springer;Società Italiana di Statistica, vol. 19(4), pages 587-607, November.
    12. Mussini, Mauro, 2013. "On decomposing inequality and poverty changes over time: A multi-dimensional decomposition," Economic Modelling, Elsevier, vol. 33(C), pages 8-18.

    More about this item

    JEL classification:

    • C00 - Mathematical and Quantitative Methods - - General - - - General
    • H00 - Public Economics - - General - - - General
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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