Subgroup Consistent Poverty Indices

James Foster () and Anthony F Shorrocks

Econometrica, 1991, vol. 59, issue 3, 687-709

Abstract: It seems desirable that the overall level of poverty should fall whenever poverty decreases within some subgroup of the population and is unchanged outside that group. Yet this simple and attractive property, which we call "subgroup consistency," is violated by many of the poverty indices suggested in recent years. This paper characterizes the class of subgroup consistent poverty indices, and identifies the special features associated with this property. Copyright 1991 by The Econometric Society.

Date: 1991
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