Template-type: ReDif-Paper 1.0
Author-Name: Bosmans Kristof  
Author-workplace-name: METEOR
Title: Distribution-sensitivity of rank-dependent poverty measures
Abstract: We propose a criterion to rank poverty measures on the basis of distribution-sensitivity. Thecriterion compares reactions to ‘lossy’ transfers among the poor and is sufficiently general to beapplicable to any pair of poverty measures. We focus specifically on the class of rank-dependentpoverty measures and provide distribution-sensitivity rankings of the poverty gap ratio, the firstand second Sen measures, the Thon measure, the Shorrocks measure, and the Thon, Kakwani and S-Giniclasses of measures. Moreover, we discuss the relationship between the proposed criterion and twoalternative distribution-sensitivity criteria that directly apply the Arrow-Pratt theory of riskaversion. Finally, we provide an empirically tractable necessary and sufficient condition forunanimous poverty rankings by all continuous and replication invariant rank-dependent povertymeasures exhibiting a predetermined minimum degree of distribution-sensitivity.
Keywords: public economics ; 
Series: Research Memoranda
Creation-Date: 2012
Number: 034
File-URL: http://arnop.unimaas.nl/show.cgi?fid=25396
File-Format: application/pdf
File-Size: 517077
Handle: RePEc:unm:umamet:2012034