Measuring welfare, inequality and poverty with ordinal variables

A new GLO Discussion Paper meets the challenge in making distributional comparisons with ordinal data.

GLO Discussion Paper No. 962, 2021

Measuring welfare, inequality and poverty with ordinal variables Download PDF
by Silber, Jacques & Yalonetzky, Gaston

GLO Fellows Jacques Silber & Gaston Yalonetzky

Author Abstract: The key challenge in making distributional comparisons with ordinal data is the lack of commensurability of the distances between the ordered categories. This chapter provides a critical review of the most recent theoretical developments addressing this challenge and providing methods for ethical poverty, welfare, and inequality comparisons with univariate ordered multinomial distributions.

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