Multi-dimensional analysis of poverty in Ghana using fuzzy sets theory

Type Journal Article - Cahiers de recherche PMMA
Title Multi-dimensional analysis of poverty in Ghana using fuzzy sets theory
Author(s)
Publication (Day/Month/Year) 2007
URL http://hayek.diw.de/documents/dokumentenarchiv/17/diw_01.c.57614.de/appiah-kubi.pdf
Abstract
The paper studies multidimensional aspects of the phenomenon of poverty and living conditions in Ghana. The aim is to fill the vacuum that has been left over by the traditional uni-dimensional measures of deprivation based on poverty lines, exclusively estimated on the basis of monetary variables such as income or consumption expenditure. It combines monetary and non-monetary, qualitative and quantitative indicators, including housing conditions, the possession of durable goods, equivalent disposable income and equivalent expenditure, to a number of composite measures of human welfare. The study employs the fuzzy-set theoretic framework to compare levels of deprivation in Ghana over time using micro data from the last two rounds of the Ghana Living Standard Surveys (1991/1992 and 1998/1999). The results of the estimation of the membership functions, depicting the levels of deprivation for the various categories of deprivation indicators, show a composite deprivation degree of 0.2137 for the whole country in 1998/99 as compared to 0.2123 in 1991/92. This deprivation trend reveals that poverty appears to have witnessed scarcely any change in Ghana and even rose slightly during the nineties, contrary to the uni-dimensional analytical GLSS 4 report of an overall broadly favourable trend in poverty in Ghana during the 1990s.

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