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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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Journal ArticleDOI

Multidimensional poverty indices

TL;DR: The axiomatic foundation of multidimensional poverty indices is explored and the fact that domain restrictions may have a critical role in the design ofMultidimensional indices is highlighted.
Book ChapterDOI

Choosing Dimensions: The Capability Approach and Multidimensional Poverty

TL;DR: The main merits of the approach is the need to address these judgmental questions in an explicit way, rather than hiding them in some implicit framework as mentioned in this paper, and one of the main merits is that there can be substantial debates on the particular functionings that should be included in the list of important achievements and corresponding capabilities.
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Robust multidimensional poverty comparisons

TL;DR: In this article, the authors demonstrate how to make poverty comparisons using multidimensional indicators of well-being, showing in particular how to check whether the comparisons are robust to aggregation procedures and to the choice of multi-dimensional poverty lines.
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On Multidimensional Indices of Poverty

TL;DR: The authors argued that the goal for future poverty monitoring efforts should be to develop a credible set of multiple indices, spanning the dimensions of poverty most relevant to a specific setting, rather than a single multi-dimensional index when weights are needed, they should be consistent with well-informed choices made by poor people.
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