Multidimensional poverty measurement: Shouldn’t we take preferences into account

Type Working Paper
Title Multidimensional poverty measurement: Shouldn’t we take preferences into account
Author(s)
Publication (Day/Month/Year) 2012
URL http://www.ecineq.org/ecineq_bari13/FILESxBari13/CR2/p84.pdf
Abstract
We study multidimensional poverty measurement. We propose to use agentsípreferences themselves to aggregate the di§erent poverty dimensions. We axiomatically derive a family of poverty indices. The key axiom consists in a priori identifying which preference relation makes experiencing deprivation the most severe experience. Then, we use data from the Russia Longitudinal Monitoring Survey (RLMSHSE) to illustrate the approach. We Önd considerable empirical di§erences between the results based on a preference-sensitive multidimensional poverty measure and one-dimensional or preference-insensitive alternative measures.

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