Multidimensional poverty measurement is still developing. Recently, Datt proposed an updated version of the widely-used method from Alkire and Foster, which adds a sensitivity to the severity of deprivation. Additionally, Shorrocks proposed a new method for decomposing the multidimensional poverty index, using the Shapley value. In this paper, I apply both Datt’s and Shorrocks’s method and test for robustness. Datt’s method is theoretically better than the Alkire-Foster method, but does not seem to deliver significantly different results. Shorrocks’s method has potential, but the results are strongly dependent on the choice for a weighting scheme, on which there is still little reliable data or scientific research available. At this point, decomposition does therefore not offer any substantial benefit.

Additional Metadata
Thesis Advisor Spiritus, K.F.J.
Persistent URL hdl.handle.net/2105/49784
Series Business Economics
Citation
Prins, H.C. (2019, November 12). Robustness of distribution-sensitive multidimensional poverty and the Shapley decomposition. Business Economics. Retrieved from http://hdl.handle.net/2105/49784