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  • 1
    Online-Ressource
    Online-Ressource
    Washington, D.C : The World Bank
    Sprache: Englisch
    Seiten: 1 Online-Ressource (65 pages)
    Paralleltitel: Erscheint auch als Decerf, Benoit A Meta-Theory for Absolute Poverty Lines
    Schlagwort(e): Absolute Poverty ; Global Poverty ; Heterogeneous Preferences ; Poverty and Development Research ; Poverty Lines ; Poverty Monitoring and Analysis ; Poverty Reduction
    Kurzfassung: Absolute poverty lines aim to track a fixed poverty standard consistently. There are two main approaches for the construction of absolute poverty lines. The "welfaristic" approach tracks a fixed level of utility, and the "objective" approach tracks a fixed list of achievements. As they yield different poverty comparisons, longstanding debates between their respective proponents take place both at global and national levels. However, these debates only provide informal arguments about their respective theoretical validity. This paper proposes a meta-theory for the consistency properties of absolute poverty lines under heterogeneous prices and heterogeneous preferences. The results identify the sets of consistency properties that fully characterize the poverty lines underpinned by these approaches. Which approach has better consistency properties depends on two aspects of the application for which poverty is monitored
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  • 2
    Sprache: Englisch
    Seiten: 1 Online-Ressource (27 pages)
    Paralleltitel: Erscheint auch als Decerf, Benoit Implications of Using Nonstandard Poverty Lines: An Illustration using the Case of the Arab Republic of Egypt
    Schlagwort(e): Absolute Poverty ; Equity and Development ; Equivalence Scale ; Gender and Poverty ; Identification of Poor Households ; Implicit Genderi Bias ; Poverty Methodology ; Poverty Reduction ; Poverty Trend
    Kurzfassung: Many developing countries' official poverty methodologies rely on nonstandard poverty lines, which complicate poverty comparisons across space or time. The paper considers the case of the Arab Republic of Egypt, whose official poverty lines have two important nonstandard features. First, the line is neither absolute nor relative, but rather hybrid or "weakly relative" Second, the poverty line's implicit equivalence scales are not fixed, but are rather endogenous. This paper provides a conceptual and quantitative understanding of these two nonstandard features. The results reveal that the equivalence scale implicit in the official methodology is quantitatively very similar to the (simpler) per capita equivalence scale. Switching to a per capita equivalence scale would help address an implicit gender bias that the paper identifies in Egypt's official poverty lines. The analysis shows that the official distribution of poverty across regions is very similar to that associated with a purely absolute line. In addition, the change in official poverty rates over the period analyzed (2015 to 2017/18) lies halfway between the larger increase captured by a purely absolute line (10 percentage points) and that captured by a purely relative measure (1 percentage point). However, the results show that these more standard poverty lines do not systematically perform better than the official methodology with respect to the identification of disadvantaged households
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  • 3
    Sprache: Englisch
    Seiten: 1 Online-Ressource (51 pages)
    Paralleltitel: Erscheint auch als Kraay, Aart A New Distribution Sensitive Index for Measuring Welfare, Poverty, and Inequality
    Schlagwort(e): Economic Theory and Research ; Inequality Index ; Macroeconomics and Economic Growth ; Poverty Index ; Poverty Informatics ; Poverty Reduction ; Shared Prosperity ; Welfare Index
    Kurzfassung: Simple welfare indices such as mean income are ubiquitous but not distribution sensitive. In contrast, existing distribution sensitive welfare indices are rarely used, often because they are difficult to explain and/or lack intuitive units. This paper proposes a simple new distribution sensitive welfare index with intuitive units: the average factor by which individual incomes must be multiplied to attain a given reference level of income. This new index is subgroup decomposable with population weights and satisfies the three main definitions of distribution sensitivity in the literature. Variants on this index can be used as distribution sensitive poverty measures and as inequality measures, with the same simple intuitive units. The properties of the new index are illustrated using the global distribution of income across individuals between 1990 and 2019, as well as with selected country comparisons. Finally, the index can be used to define the "prosperity gap" as a proposed new measure of "shared prosperity," one of the twin goals of the World Bank
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  • 4
    Online-Ressource
    Online-Ressource
    Washington, D.C : The World Bank
    Sprache: Englisch
    Seiten: 1 Online-Ressource (19 pages)
    Paralleltitel: Erscheint auch als Decerf, Benoit Normative Indicators Combining Poverty and Mortality: A Survey
    Schlagwort(e): Disease Control and Prevention ; Economic Indicators ; Health Economics and Finance ; Health Indicators ; Health, Nutrition and Population ; Inequality ; Life Expectancy Inequity ; Life-Expectancy ; Mortality Indicators ; Mortality Paradox ; Multidimensional Poverty ; Normative Well-Being Indicators ; Poverty Indicators ; Poverty Measurement ; Poverty Reduction ; Poverty-Adjusted ; Public Sector Development ; Selective Mortality ; Welfare Economics ; Well-Being Comparison
    Kurzfassung: This paper surveys the small branch of welfare economics that studies indicators combining poverty and mortality. The paper distinguishes two reasons for constructing such indicators. The first reason is to perform multidimensional well-being comparisons. For this purpose, mortality has (negative) intrinsic value. The key question relates to the trade-off that the indicator makes between poverty and mortality, that is, between the quality and quantity of life. A lifecycle utility approach suggests expressing this trade-off as the number of years spent in poverty that is deemed equivalent to one year lost to mortality. The second reason is to investigate the instrumental role that selective mortality-the fact that the poor tend to die earlier-has on the evolution of poverty measures. Then, the key question is how to define the counterfactual situation against which the instrumental impact of mortality is assessed
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  • 5
    Sprache: Englisch
    Seiten: 1 Online-Ressource (40 pages)
    Paralleltitel: Erscheint auch als Baland, Jean-Marie Poverty-Adjusted Life Expectancy: A Consistent Index of the Quantity and the Quality of Life
    Schlagwort(e): Country Comparison ; Health and Poverty ; Health, Nutrition and Population ; Human Development Index ; Mortality ; Multidimensional Poverty ; Poverty ; Poverty Monitoring and Analysis ; Poverty Reduction ; Poverty-Adjusted Life Expectancy Index ; Social Analysis ; Social Development ; Well-Being Index
    Kurzfassung: Poverty and mortality are arguably the two major sources of loss of well-being. Most mainstream measures of human development capturing these two dimensions aggregate them in an ad-hoc and controversial way. This paper develops a new index aggregating the poverty and the mortality observed in a given period in a consistent way. It is called the poverty-adjusted life expectancy index. This index is based on a single normative parameter that transparently captures the trade-off between well-being losses from being poor or from being dead. The paper first shows that the poverty-adjusted life expectancy index follows naturally from an expected life-cycle utility approach a la Harsanyi. The paper then proceeds to empirical comparisons between countries and across time and focuses on situations in which poverty and mortality provide conflicting evaluations. Once it is assumed that being poor is (at least weakly) preferable to being dead, the analysis finds that about a third of these conflicting comparisons can be unambiguously ranked by the poverty-adjusted life expectancy index. Finally, the paper shows that this index naturally defines a new and simple index of multidimensional poverty, the expected deprivation index
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  • 6
    Online-Ressource
    Online-Ressource
    Washington, D.C : The World Bank
    Sprache: Englisch
    Seiten: 1 Online-Ressource (46 pages)
    Paralleltitel: Erscheint auch als Decerf, Benoit A Welfarist Theory Unifying Monetary and Non-Monetary Poverty Measurement
    Schlagwort(e): Inequity ; Living Standards ; Multidimensional Poverty Measure ; Nature of Well-Being ; Poverty and Policy ; Poverty Definition ; Poverty Measurement ; Poverty Monitoring and Analysis ; Poverty Reduction ; Social Development ; Welfarist Definition of Poverty ; Well-Being ; Well-Being Accounting
    Kurzfassung: Multidimensional poverty measures are increasingly used in practice even though they face strong criticism and generate longlasting debates. These contentions primarily find their origin in the divergence between standard poverty identification practices and a welfarist definition of the poor. This paper fills this gap by constructing a poverty measurement theory that (i) adopts a welfarist definition of the poor, (ii) acknowledges that the relevant welfare function is only partially known and (iii) encompasses both market and non-market dimensions of well-being. The theory shows that standard identification practices are not flexible enough in order to properly account for the multidimensional nature of well-being. This nature implies that an individual is poor when she experiences an extremely low outcome in some dimension or/and when she cumulates moderately low outcomes in several dimensions. The paper proposes a simple refinement that better reflects this insight. The paper uses the theory in order to provide answers to several longlasting debates. The theory provides a conceptual foundation from which practitioners may derive guidance for the many choices they face
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  • 7
    Online-Ressource
    Online-Ressource
    Washington, D.C : The World Bank
    Sprache: Englisch
    Seiten: 1 Online-Ressource (19 pages)
    Paralleltitel: Erscheint auch als Decerf, Benoit Absolute and Relative Poverty Measurement: A Survey
    Schlagwort(e): Absolute Monetary Poverty Measurement ; Absolute Poverty ; Equity and Development ; Hybrid Poverty Lines ; Monetary Poverty Measurement ; Poverty Diagnostics ; Poverty Index ; Poverty Indices ; Poverty Lines ; Poverty Measurement ; Poverty Monitoring and Analysis ; Poverty Reduction ; Relative Monetary Poverty Measurement ; Relative Poverty ; Social Development
    Kurzfassung: This paper reviews the debate opposing the absolute and relative approaches to monetary poverty measurement. The arguments for combining both approaches into a single "overall" monetary poverty measure are introduced. The most salient proposals of hybrid poverty lines are presented. Then, the reasons why specific poverty indices may be required when a hybrid line is used are discussed. The class of hierarchical poverty indices is described, focusing in particular on the hierarchical headcount ratio
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  • 8
    Sprache: Englisch
    Seiten: 1 Online-Ressource (68 pages)
    Paralleltitel: Erscheint auch als Print Version: Decerf, Benoit Fair and Welfare-Consistent Global Income Poverty Measurement: Theory and Application
    Schlagwort(e): Absolute Poverty ; Income Poverty ; Inequality ; Living Standards ; Poverty Lines ; Poverty Measurement ; Poverty Reduction ; Relative Poverty ; Welfare-Consistency
    Kurzfassung: There is growing support for the idea that global income poverty should be assessed with a measure accounting for both own income and relative income. The trade-off that such a measure makes between own income and relative income is the key question. Non-paternalism requires that this trade-off be welfareconsistent, that is, related to individual preferences. This paper studies the implications of requiring that the poverty measure makes a fair and welfare-consistent aggregation of individual preferences. The results provide support for the absolute and relative global lines proposed in the literature but rule out the use of classical poverty indexes. In particular, the paper finds that the ubiquitoushead-count ratio violates a minimal welfare-consistency property. The paper shows empirically that using a modification of the head-count ratio that satisfies this property has major implications for the evaluation of global poverty
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  • 9
    Online-Ressource
    Online-Ressource
    Washington, D.C : The World Bank
    Sprache: Englisch
    Seiten: 1 Online-Ressource (43 pages)
    Paralleltitel: Erscheint auch als Print Version: Decerf, Benoit Fair Inheritance Taxation
    Schlagwort(e): Compensation ; Fairness ; Inequality ; Inheritance Tax ; Law and Development ; Macroeconomics and Economic Growth ; Poverty Reduction ; Responsibility ; Tax Exemption ; Tax Law ; Taxation ; Taxation and Subsidies
    Kurzfassung: This paper studies the optimal taxation of bequests in a model in which agents have heterogeneous preferences over their consumption and the net-of-tax bequest received by their heir. The bequest left by an individual depends on both her degree of altruism and the bequest received from her parents. First, the paper studies two principles that are at the heart of the debates on taxing inheritances: (1) children should not be penalized by the lack of altruism of their parents, and (2) parents should be free to choose their bequests. Only one social welfare function satisfies these two principles, together with Pareto efficiency and a separability principle. Second, the paper studies the shape of the inheritance tax scheme that maximizes this social welfare function. It shows that in the aggregate, the inheritance tax must collect money (redistributed through a non-negative demogrant). Moreover, small bequests cannot be taxed (they can potentially be subsidized), while bequests that are larger than those of the most altruistic individuals who did not receive bequests from their parents should be taxed as much as efficiency permits
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