Consolidating and improving the assets indicator in the global Multidimensional Poverty Index

Frank Vollmer and Sabina Alkire

World Development, 2022, vol. 158, issue C

Abstract: This article traces a methodological path for constructing a statistically and normatively validated assets indicator, that in turn can be used within an internationally comparable measure of multidimensional poverty. The article validates a revision to the assets indicator of the global Multidimensional Poverty Index (global MPI) that makes the best possible use of existing data. Our normative focus is shaped by Amartya Sen’s capability approach, framing assets in relation to human activities. But surprisingly few asset items were available for 75 countries and 3.5 billion people, the standard set for indicator revisions, so the paper notes the lack of comparable data, as well as the lack of data on the quality, quantity or gendered ownership of assets. Drawing on empirical antecedents and complemented by normative reasoning, this article uses tetrachoric exploratory factor analysis, multiple correspondence analysis, classical test theory, item response theory and a non-parametric Mokken scale procedure to identify a set of items that proxy asset deprivations. Measures were trialled across 26 purposefully-selected countries. The final counting-based assets index includes nine statistically validated items (adding computer and animal cart to the original global MPI assets indicator). It has higher reliability than other options, and is arguably the most rigorous feasible indicator to compare asset deprivations that can be constructed from existing global MPI data sources. The methodological approach outlined here could be used to design and validate assets indicators within national, regional, or bespoke multidimensional poverty measures elsewhere.

Keywords: Assets Indices; Multidimensional Poverty; Poverty Measurement; Welfare; Counting Approach; Material Deprivation (search for similar items in EconPapers)
JEL-codes: D63 I3 I32 O1 Q15 Q2 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:wdevel:v:158:y:2022:i:c:s0305750x22001875

DOI: 10.1016/j.worlddev.2022.105997

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