Measuring poverty with the Foster, Greer and Thorbecke indexes based on the Gamma distribution

Antonio Fernández-Morales

MPRA Paper from University Library of Munich, Germany

Abstract: The purpose of this paper is the estimation of the Foster, Greer and Thorbecke family of poverty indexes using the Gamma distribution as a continuous representation of the distribution of incomes. The expressions of this family of poverty indexes associated with the Gamma probability model and their asymptotic distributions are derived in the text, both for an exogenous and a relative (to the mean) poverty line. Finally, a Monte Carlo experiment is performed to compare three different methods of estimation for grouped data.

Keywords: Poverty indexes; Income distribution; Gamma distribution (search for similar items in EconPapers)
JEL-codes: C13 C46 I32 (search for similar items in EconPapers)
Date: 2016
New Economics Papers: this item is included in nep-ecm
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:69648

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