Revisiting the Normalization Axiom in Poverty Measurement

S. Subramanian ()
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S. Subramanian: Independent Scholar

Chapter Chapter 11 in Social Values and Social Indicators, 2021, pp 125-138 from Springer

Abstract: Abstract The ‘normalization’ axiom associated with Sen’s poverty index–and this, indeed, holds for most extant measures of poverty—entails an uncomfortable implication when we adopt a strong, or inclusive, definition of the poor. This paper suggests that we may not always be at liberty to adopt a weak definition. The available alternative then is to change the form of the poverty measure. Accordingly, a modification of his normalization axiom which leads to a variant of Sen’s index, together with a variant also of the Foster–Greer–Thorbecke poverty measures, is advanced and discussed. The derivation of the new normalization axiom benefits from Basu’s decomposition of the Sen axiom.

Keywords: Normalization; Sen index of poverty; Foster–Greer–Thorbecke Poverty Measure (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:spr:thechp:978-981-16-0428-7_11

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DOI: 10.1007/978-981-16-0428-7_11

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