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On the construction of a feasible range of multidimensional poverty under benchmark weight uncertainty. (English) Zbl 1431.91149

Summary: There are infinitely many alternative benchmark weights that decision makers could choose to measure multidimensional poverty. To overcome the resulting uncertainty, we derive a feasible range of multidimensional poverty that considers all admissible weights within the chosen lower and upper bounds of weights. We use Kenyan and Canadian data to illustrate the use of our methodology, which is an adaptation of existing methods for portfolio analysis based on stochastic dominance. These two-empirical analyses suggest that different weights allocated to poverty dimensions can produce very different multidimensional poverty outcomes for a given population even in cases with small weight perturbations.

MSC:

91B15 Welfare economics
90C11 Mixed integer programming

References:

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