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Graphical Representation of Multidimensional Poverty: Insights for Index Construction and Policy Making

Author

Listed:
  • Rodrigo García Arancibia

    (Universidad Nacional del Litoral/CONICET)

  • Ignacio Girela

    (Universidad Nacional de Córdoba/CONICET)

Abstract

By means of probabilistic graphical models, in this paper, we present a new framework for exploring relationships among indicators commonly included in the Multidimensional Poverty Index (MPI). In particular, we propose an Ising model with covariates for modeling the MPI as an undirected graph. First, we prove why Ising models are consistent with the theoretical distribution of MPI indicators. Then, a comparison between our estimates and the association measures typically used in the literature is provided. Finally, we show how undirected graphs can complement the MPI policy relevant properties, apart from discovering further insightful patterns that can be useful for policy purposes. This novel approach is illustrated with an empirical application for the global MPI indicators of Guinea and Ecuador, taking living areas and monetary poverty as covariates,respectively

Suggested Citation

  • Rodrigo García Arancibia & Ignacio Girela, 2023. "Graphical Representation of Multidimensional Poverty: Insights for Index Construction and Policy Making," Working Papers 233, Red Nacional de Investigadores en Economía (RedNIE).
    • Handle: RePEc:aoz:wpaper:233
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    File URL: https://rednie.eco.unc.edu.ar/files/DT/233.pdf
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    References listed on IDEAS

    as
    1. Stephan Klasen & Simon Lange, 2015. "Targeting Performance and Poverty Effects of Proxy Means-Tested Transfers: Trade-offs and Challenges," Ibero America Institute for Econ. Research (IAI) Discussion Papers 231, Ibero-America Institute for Economic Research.
    2. Nicolai Suppa, 2016. "Comparing Monetary and Multidimensional Poverty in Germany," OPHI Working Papers 103, Queen Elizabeth House, University of Oxford.
    3. Sabina Alkire, James E. Foster, Suman Seth, Maria Emma Santos, Jose M. Roche and Paola Ballon, 2015. "Multidimensional Poverty Measurement and Analysis: Chapter 9 - Distribution and Dynamics," OPHI Working Papers ophiwp090_ch9.pdf, Queen Elizabeth House, University of Oxford.
    4. Sabina Alkire & James E. Foster & Suman Seth & Maria Emma Santos & Jose M. Roche & Paola Ballon, 2015. "Multidimensional Poverty Measurement and Analysis: Chapter 7 - Data and Analysis," OPHI Working Papers 88, Queen Elizabeth House, University of Oxford.
    5. Van Q. Tran & Sabina Alkire & Stephan Klasen, 2015. "Static and Dynamic Disparities between Monetary and Multidimensional Poverty Measurement: Evidence from Vietnam," Research on Economic Inequality, in: Thesia I. Garner & Kathleen S. Short (ed.), Measurement of Poverty, Deprivation, and Economic Mobility, volume 23, pages 249-281, Emerald Publishing Ltd.
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    19. Sabina Alkire and Suman Seth, 2016. "On Relationship between Income Poverty and Multidimensional Poverty in China," OPHI Working Papers ophiwp101_1.pdf, Queen Elizabeth House, University of Oxford.
    20. Sabina Alkire & James E. Foster & Suman Seth & Maria Emma Santos & Jose M. Roche & Paola Ballon, 2015. "Multidimensional Poverty Measurement and Analysis: Chapter 9 - Distribution and Dynamics," OPHI Working Papers 90, Queen Elizabeth House, University of Oxford.
    21. Roberto Angulo & Yadira Díaz & Renata Pardo, 2016. "The Colombian Multidimensional Poverty Index: Measuring Poverty in a Public Policy Context," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 127(1), pages 1-38, May.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    MPI; Markov Random Fields; Ising Model; Conditional Dependency; Deprivations;
    All these keywords.

    JEL classification:

    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • C18 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Methodolical Issues: General
    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions

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