Measurement of multidimensional deprivation using capability approach and fuzzy set theory
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Over the past several decades, the premises of the traditional money metric poverty measurement have faced serious criticisms from different schools of scholarships. Four issues have been dominant in this context: indirect versus direct evaluation of deprivation; poverty-line-based versus fuzzy method of identification; single versus multidimensional approach of measurement; and absolute versus relative notion of deprivation. In the first article of this dissertation, I address these four issues in developing a general methodology for the measurement of multidimensional deprivation in a fuzzy setup. The methodology measures deprivation along multiple dimensions and allows for including multiple dimensional components along each dimension. I propose new fuzzy membership functions that combine the notions of absolute and relative deprivation. I apply weighted aggregations within and across the dimensions. The weights are derived from the population level distribution and comprise two components that capture the absolute and relative impacts of deprivation. The methodology is developed for application in a sample survey setup. I propose a unified axiomatic framework for fuzzy and multidimensional deprivation measures and examined the axiomatic conformity of the proposed method. In the second article, I operationalize capability approach in the functioning space to measure multidimensional deprivation in a fuzzy setup. I propose a new functional form of evaluation that include multiple functioning components to capture deprivation along each functioning dimension. I apply a three stage method to systematically select the functioning dimensions and functioning components. I use the Survey of Income and Program Participation (SIPP) to measure multidimensional deprivation in the United States. The United States has a long history of debates and discussions over its official poverty measure (OPM). Scholars discussed several limitations in the OPM and suggested remedial measures. In the third article, I suggest a multidimensional and fuzzy measure of deprivation for the United States. The empirical application uses the SIPP and measure deprivation along seven dimensions. My estimates indicate a marginal decline in the multidimensional deprivation between 2009 and 2011. I find that various health issues had the highest impact on multidimensional deprivation in the United States. The results supplement the OPM and have major policy implications.