Title

Graphical Representation of Multidimensional Poverty: Insights for Index Construction and Policy Making.

Authors

García Arancibia, Rodrigo; Girela, Ignacio

Abstract

By means of probabilistic graphical models, in this paper, we present a new framework for exploring relationships among indicators commonly included in the Multidimensional Poverty Index (MPI). In particular, we propose an Ising model with covariates for modeling the MPI as an undirected graph. First, we prove why Ising models are consistent with the theoretical distribution of MPI indicators. Then, a comparison between our estimates and the association measures typically used in the literature is provided. Finally, we show how undirected graphs can complement the MPI policy-relevant properties, apart from discovering further insightful patterns that can be useful for policy purposes. This novel approach is illustrated with an empirical application for the global MPI indicators of Guinea and Ecuador, taking living areas and monetary poverty as covariates, respectively.

Subjects

ECUADOR; GUINEA; ISING model; UNDIRECTED graphs; POVERTY; POVERTY areas; RANDOM fields; PROBABILISTIC databases

Publication

Social Indicators Research, 2024, Vol 172, Issue 2, p595

ISSN

0303-8300

Publication type

Academic Journal

DOI

10.1007/s11205-024-03325-8