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Robustness properties of poverty indices

Author

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  • Cowell, Frank
  • Victoria-Feser, Maria-Pia

Abstract

Drawing on recent work concerning the statistical robustness of inequality statistics we examine the sensitivity of poverty indices to data contamination using the concept of the influence function. We show that poverty and inequality indices have fundamentally different robustness properties, and demonstrate that an imporrtant commonly used subclass of poverty measures will be robust under data conta m ination. We investigate both the case where the poverty line is exogenenously fixed and where it must be estimated from the data.

Suggested Citation

  • Cowell, Frank & Victoria-Feser, Maria-Pia, 1994. "Robustness properties of poverty indices," LSE Research Online Documents on Economics 2158, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:2158
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    File URL: http://eprints.lse.ac.uk/2158/
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    Cited by:

    1. DECERF, Benoit, 2014. "Income poverty measures with relative poverty lines," LIDAM Discussion Papers CORE 2014022, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    2. Decerf, B., 2015. "A new index combining the absolute and relative aspects of income poverty: Theory and application," LIDAM Discussion Papers CORE 2015050, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    3. Cowell, Frank A. & Victoria-Feser, Maria-Pia, 1996. "Poverty measurement with contaminated data: A robust approach," European Economic Review, Elsevier, vol. 40(9), pages 1761-1771, December.

    More about this item

    Keywords

    Poverty; inequality; robustness; influence function;
    All these keywords.

    JEL classification:

    • D6 - Microeconomics - - Welfare Economics
    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General

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