A NEW MULTIPLICATIVE DECOMPOSITION FOR THE FOSTER–GREER–THORBECKE POVERTY INDICES

Authors


Ana Urrutia, Department of Applied Economics IV, University of the Basque Country, Avenue Lehendakari Aguirre 83, 48015 Bilbao, Spain. Tel: +34 946 013 694; Fax: +34 946 017 028; Email: anamarta.urrutia@ehu.es. We are very grateful to Professor Peter Lambert and an anonymous referee for their useful suggestions that have contributed a great deal in improving the paper. Preliminary versions of this paper were presented at the 5th International Conference on Logic, Game Theory and Social Choice (Bilbao, 2007) and at the 9th International Meeting of the Society for Social Choice and Welfare (Montreal, 2008). We wish to thank the participants at these conferences for their comments. This research has been partially supported by the Spanish Ministerio de Educación y Ciencia under project SEJ2006-05455, co-funded by FEDER and by the Basque Government under the project GIC07/146-IT-377-07.

ABSTRACT

This paper shows that Foster–Greer–Thorbecke poverty indices can be written as the product of components summarizing the incidence, intensity and inequality dimensions of poverty and provides an empirical illustration of the decomposition using Spanish household budget surveys data.

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