Multidimensional Poverty Rankings based on Pareto Principle: A Practical Extension

Maki Michinaka and Takahiro Ito

Global COE Hi-Stat Discussion Paper Series from Institute of Economic Research, Hitotsubashi University

Abstract: This paper proposes a ranking method of multidimensional poverty and extends it aiming to enhance its practical utility. While our original ranking method that assumes non-comparability among different dimensions of poverty succeeds in eliminating some implicit arbitrariness in existing ranking, it also confronts a disadvantage that a non- negligible number of objectives (countries) are ranked at the same level. In order to improve this disadvantage, we propose an extended ranking method, where we allow the data to have a certain range of bandwidth. The introduction of bandwidth improves the usefulness of our ranking in the sense that it decreases the number of countries with the same rank. In addition, a simulation exercise shows that this extension also improves the robustness of the ranking against measurement errors.

Date: 2010-05
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