New perspectives on a more-or-less familiar poverty index

Abstract

In this article, we examine some properties and extensions of a particular poverty index, which is already passingly familiar to poverty analysts. Our investigation leads to a new perspective on the family of additively decomposable and scale-invariant poverty indices and provides new insights into the class of poverty measures proposed by Foster et al. (Econometrica 52:761–766, 1984). Finally, our work leads to a clarification of the different roles of transfer properties and distribution sensitivity in poverty measurement.