Identification and Aggregation in the Alkire Foster Method
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Watch the video (includes video guide)
Key readings covered in this lecture
Alkire, S., Foster, J.E., 2011. “Counting and Multidimensional Poverty Measurement” Journal of Public Economics
Alkire, S., Foster, J.E., 2011 Understandings and Misunderstandings of Multidimensional Poverty Measurement
Apart from the lectures introduction to identification and aggregation a useful the Technical Guide on the Alkire Foster method
Normative Issues in Multidimensional Poverty Measurement
Ongoing Debates and Research Topics
Guide to the video
00:00 General introduction
06:00 Introduction to A&F; measurement methodology; the lecture focuses on the identification and aggregation
Part 1: Why Multidimensional Measures?
10:30 Review unidimensional measures, as the concept of identification and aggregation can be translated into the multidimensional space.
14:20 Challenges of unidimensional measures
16:20 Why multidimensional measures of poverty?
Part 2: The Dual Cut-off Approach: the Main Question Being “Who is Poor?” Sen (1976)
20:07 The first step: identification using the deprivation matrix and z-cut offs
25:04 The second step: aggregation (censoring of data)
27:12 Explanation of the censored headcount, H
28:16 Explanation of the average share of deprivations among the poor, A
29:16 Explanation of the adjusted headcount, M0, including the properties of the measure
32:54 Explanation fof M1 and M2, in the case of cardinal data
37:35 The importance of normative issues (see also Normative Issues in Multidimensional Poverty Measurement)
42:27 The importance of axioms in doing methodological research
47:47 The axioms/properties of M0
48:35 Application of weights to the identification and aggregation steps to get H, A and M0 with weight applied (see also paper based exercise for this lecture)
53:27 Example of USA (decomposition, contributions of deprivations, dominance)
56:07 Example of Indonesia
58:46 More empirical examples
Part 3: Marginal vs Joint Distributions (see also Ongoing Debates and Research Topics)
59:45 Important points: marginal vs joint distributions
64: 15 Value of a joint distribution (marginal does not identify who is poor)
69:15 Censoring process
70:14 Terminology used in the AF method, which is different from income poverty measures due to the dual cut-off.
Paper-based exercise in the dual cut-off methodology
To get a thorough understanding of the calculation steps involved in the Alkire Foster Method a good starting point is the paper based exercise below.
The exercise asks you to calculate the different steps of identification and aggregation in the A&F methodology, including the adjusted headcount, M0 and its components H and A.
Exercise sheet
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