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New multidimensional approaches to poverty measurement in Bosnia and Herzegovina

Delalić Adela (), Somun-Kapetanović Rabija () and Resić Emina ()
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Delalić Adela: School of Economics and Business, University of Sarajevo, Bosnia and Herzegovina
Somun-Kapetanović Rabija: School of Economics and Business, University of Sarajevo, Bosnia and Herzegovina
Resić Emina: School of Economics and Business, University of Sarajevo, Bosnia and Herzegovina

Croatian Review of Economic, Business and Social Statistics, 2017, vol. 3, issue 1, 1-15

Abstract: Unlike the standard unidimensional poverty indices, based mostly on monetary poverty measures, multidimensional poverty indices may include numerous non-monetary poverty indicators. This study utilized fuzzy and Alkire – Foster (AF) and fuzzy methodology to assess the poverty level in Bosnia and Herzegovina (B&H) and to compare the results with official poverty assessments. In addition to consumption as a monetary measure, we constructed AF and fuzzy indices by including numerous non-monetary measures that indicate housing quality, possession of durable goods and the household structure. AF multidimensional indices for B&H are calculated based on data from Household Budget Surveys (2004, 2007 and 2011) and fuzzy poverty indices are calculated based on data from HBS 2011. This research has found the differences in the values, direction and dynamics between unidimensional and multidimensional approaches to poverty measurement. Authors state that it is not sufficient to base the creation of more efficient social policies and poverty reduction strategies exclusively on unidimensional indices that address just one dimension of poverty.

Keywords: Alkire – Foster poverty indices; fuzzy poverty indices; multidimensional poverty in B&H (search for similar items in EconPapers)
Date: 2017
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