J Econ Inequal (2011) 9:479–481
DOI 10.1007/s10888-011-9198-8
A comment on the MPI index
Jacques Silber
Published online: 6 August 2011
© Springer Science+Business Media, LLC 2011
Sabina Alkire and James Foster [3]’s review of their approach to multidimensional
poverty measurement is a clear presentation of ideas they have presented and
defended previously. Their AF index, especially its simplest form which they call
“adjusted multidimensional headcount ratio” and which is the multidimensional
poverty index used by Alkire and Santos [2] in their empirical paper, has certainly
the advantage of clarity and simplicity, when compared to other multidimensional
poverty indices. This is indeed what makes it extremely attractive, in addition to the
fact that it has quite a nice number of appealing properties.
As emphasized by Rippin [8] there is however at least one (debatable) feature
which the MPI index (and actually any AF index) does not have: it violates the axiom
of Non-Increasingness under a Strong Inequality Decreasing Switch. In other words
the MPI index will not decrease when the number of dimensions in which the poorer
individual is deprived decreases. An additional missing property is that Alkire and
Foster ignore substitutability and complementarity between dimensions, although in
footnote 25 they explain why they disregarded this feature. Taking into account this
element when there are more than two dimensions is in fact not a simple task but it
may have very important policy implications. Duclos et al. [5], when discussing the
case of complementarity between two dimensions, thus wrote that “better nourished
children learn better” so that “overall poverty would decline by more if we were to
transfer education from the poorly nourished to the better nourished.”
To simplify the analysis of multidimensional poverty but keep its policy relevance,
it could be useful to make a clear distinction between the number of dimensions
to take into account when measuring deprivation and the number of variables to
include when attempting to derive an index for each poverty dimension. Alkire [1]
had stressed this point when she listed some of the questions that have to be raised
J. Silber (B )
Bar-Ilan University, Ramat-Gan, Israel
e-mail: jsilber_2000@yahoo.com