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Efficiency analysis and poverty measurement

In: Research Handbook on Measuring Poverty and Deprivation

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  • Gordon Anderson

Abstract

As a result of the development of the Functionings and Capabilities Approach to wellbeing assessment, Multidimensional Poverty and Deprivation measurement has become popular in recent years. To this end, Efficiency Analysis techniques have been borrowed from the multidimensional production theory literature and implemented in the wellbeing measurement paradigm to explore the extent of poverty in multidimensional environments. Two basic approaches prevail in the literature, a parametric isoquant estimation approach and a non-parametric data envelopment approach. This chapter outlines the two basic approaches and their origins and discusses their respective merits in their application to wellbeing measurement.

Suggested Citation

  • Gordon Anderson, 2023. "Efficiency analysis and poverty measurement," Chapters, in: Jacques Silber (ed.), Research Handbook on Measuring Poverty and Deprivation, chapter 46, pages 501-510, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:20574_46
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