ECO 2117 Study Guide - Final Guide: Multidimensional Poverty Index, Headcount, Infant Mortality

• School: University of Ottawa
• Department: Economics
• Course: ECO 2117
• Professor: Octavian Strimbu

Document Summary

Measure should not depend of who has higher income. Measure should not depend on size of the economy, or the way we measure income (dollars, rupees, etc. ) Measure should not be based on number of. Measures should be sensitive to inequality reducing transfers. Where yp is the absolute poverty line; and yi the income of the ith poor person. Proportion of population with an income level below the poverty line (cid:1834)(cid:1857)(cid:1856)(cid:1855)(cid:1867)(cid:1873)(cid:1866)(cid:1872)= Total amount of income necessary to raise everyone who is below the poverty line up to that line. Amount of income necessary to raise everyone who is below the poverty line up to that line on a per capita basis. Measures the size of the average poverty gap in relation to the poverty line. Maximizing social welfare: increase income, decreasing inequality, decreasing poverty. Value of dete(cid:396)(cid:373)i(cid:374)es (cid:449)hi(cid:272)h po(cid:448)e(cid:396)t(cid:455) (cid:373)easu(cid:396)e is (cid:272)al(cid:272)ulated.