A Multidimensional Poverty Index

Abstract

In multidimensional poverty measurement k ≥ 2 different quantitative basic needs variables y _j, j = 1...k have to be considered. Let the respective variables be substitutable. Then for a single person i = 1...n poverty can be aggregated across variables as follows:

$$ C_{1i}^* = \left( {\frac{1} {k}\sum\limits_{j = 1}^k {p_{ij}^{*\alpha } } } \right)^{\frac{1} {\alpha }} ,\alpha \geqslant 2 $$

((1))

(see Kocklaeuner (2002) with respect to an unidimensional ethical poverty index aggregating poverty across persons).