Ordinal Welfare Comparisons with Multiple Discrete Indicators: A First Order Dominance Approach and Application to Child Poverty

Channing Arndt, Roberta Distante, M. Azhar Hussain, Lars Peter Østerdal, Pham Lan Huong and Maimuna Ibraimo

World Development, 2012, vol. 40, issue 11, 2290-2301

Abstract: We develop an approach for making welfare comparisons between populations with multidimensional discrete well-being indicators observed at the micro level. The approach is rooted in the concept of multidimensional first order dominance. It assumes that, for each indicator, the levels can be ranked ordinally from worse to better; however, no assumptions are made about relative importance of any dimension nor about complementarity/substitutability relationships between dimensions. We also introduce an efficient algorithm for determining dominance and employ a bootstrap approach that permits cardinal rankings of populations. These approaches are applied to household survey data from Vietnam and Mozambique.

Keywords: ordinal; welfare; multi-dimensional poverty measurement; first order dominance; Mozambique; Vietnam (search for similar items in EconPapers)
Date: 2012
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Related works:
Working Paper: Ordinal Welfare Comparisons with Multiple Discrete Indicators: A First Order Dominance Approach and Application to Child Poverty (2012)
Working Paper: Ordinal Welfare Comparisons with Multiple Discrete Indicators: A First Order Dominance Approach and Application to Child Poverty (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:wdevel:v:40:y:2012:i:11:p:2290-2301

DOI: 10.1016/j.worlddev.2012.03.010

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