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Understandings and Misunderstandings of Multidimensional Poverty Measurement

TLDR
In this paper, the authors elucidate the strengths, limitations, and misunderstandings of multidimensional poverty measurement and provide an intuitive description of their measurement approach, including a "dual cutoff" identification step that views poverty as the state of being multiply deprived, and an aggregation step based on the traditional Foster Greer and Thorbecke (FGT) measures.
Abstract
Multidimensional measures provide an alternative lens through which poverty may be viewed and understood. In recent work we have attempted to offer a practical approach to identifying the poor and measuring aggregate poverty (Alkire and Foster 2011). As this is quite a departure from traditional unidimensional and multidimensional poverty measurement – particularly with respect to the identification step – further elaboration may be warranted. In this paper we elucidate the strengths, limitations, and misunderstandings of multidimensional poverty measurement in order to clarify the debate and catalyse further research. We begin with general definitions of unidimensional and multidimensional methodologies for measuring poverty. We provide an intuitive description of our measurement approach, including a ‘dual cutoff’ identification step that views poverty as the state of being multiply deprived, and an aggregation step based on the traditional Foster Greer and Thorbecke (FGT) measures. We briefly discuss five characteristics of our methodology that are easily overlooked or mistaken and conclude with some brief remarks on the way forward.

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References
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TL;DR: As a measure of market capacity and not economic well-being, the authors pointed out that the two can lead to misleading indications about how well-off people are and entail the wrong policy decisions.
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Poverty: An Ordinal Approach to Measurement

Amartya Sen
- 01 Mar 1976 - 
TL;DR: In this paper, the authors proposed a new measure of poverty, which should avoid some of the shortcomings of the measures currently in use, and used an axiomatic approach to derive the measure.

World development report 2000/2001 : attacking poverty

TL;DR: In this paper, the authors focus on the dimensions of poverty and how to create a better world, free of poverty, and explore the nature, and evolution of poverty to present a framework for action.
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Counting and Multidimensional Poverty Measurement

TL;DR: This paper proposed a new methodology for multidimensional poverty measurement consisting of an identification method ρk that extends the traditional intersection and union approaches, and a class of poverty measures Mα.
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