The Analysis and the Measurement of Poverty: An Interval-Based Composite Indicator Approach

Carlo Drago

Economies, 2021, vol. 9, issue 4, 1-17

Abstract: The study of poverty and its quantification is a critical yet unresolved problem in social science. This work seeks to use a new composite indicator to assess poverty as a multidimensional concept. However, subjective decisions, such as various weighting systems on the indicator’s creation, may affect its perception. In order to solve this issue, we propose to use random different composite indicators based on simulated weightings and specifications to get a comprehensive interval-based composite indicator. Our method generates robust and trustworthy measurements based on a meaningful conceptual model of poverty. Furthermore, we use some interval parameters such as the upper bound, center, and lower bound to compare the different intervals related to the different statistical units and rankings to aid in analyzing extreme situations and policy scenarios. In Sicily, Calabria, Campania, and Puglia, we identify urgent circumstances. The findings reveal a consistent indicator measurement and the shadow sector’s influence on the final measurements.

Keywords: poverty; composite indicators; interval data; interval-based composite indicators (search for similar items in EconPapers)
JEL-codes: E F I J O Q (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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Related works:
Working Paper: The Analysis and the Measurement of Poverty: An Interval-Based Composite Indicator Approach (2021)
Working Paper: The Analysis and the Measurement of Poverty: An Interval Based Composite Indicator Approach (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:gam:jecomi:v:9:y:2021:i:4:p:145-:d:651526

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