Type | Working Paper |
Title | Towards an Understanding of the Political Economy of Multidimensional Poverty Measurement |
Author(s) | |
Publication (Day/Month/Year) | 2015 |
URL | http://www.ecineq.org/ecineq_lux15/FILESx2015/CR2/p278.pdf |
Abstract | In a game-theoretic framework, we study how scalar multidimensional poverty measures affect the strategic interactions of ministers responsible for reducing deprivations in the measure’s dimensions. Ministers share a common interest in reducing measured multidimensional poverty, but also have preferences over alternative uses of their allocated budgets; we think of improvements in the scalar multidimensional poverty measure as a public good for ministers, who therefore can free ride on each other’s antipoverty spending. The allocation of resources across ministers and the measure’s parameters (the weights assigned to each dimension and the extent of deprivation depth aversion) affect equilibrium size and composition of antipoverty spending. For common parameterizations, a reallocation of budgets that improves measured poverty reduction always decreases total antipoverty spending in equilibrium. Similarly, choosing weights such that the poverty measure is effectively unidimensional favors measured poverty reduction, while antipoverty spending is larger with a multidimensional measure. Increasing deprivation depth aversion may increase or decrease the resources actually spent on the poor, depending on whether disparities across dimensions are due mostly to the number of deprived households, or to their average deprivation. We illustrate using data from Mexico, the first country to adopt an official multidimensional poverty measure. |
» | Mexico - Encuesta Nacional de Ingresos y Gastos de los Hogares 2010 (Tradicional) |