Gianni Betti, Antonella D'Agostino, Achille Lemmi, Claudio Quintano

A parametric model for estimating fuzzy poverty measures and their standard errors

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Keywords: poverty analysis, fuzzy set theory, membership function, double-bounded random process

In this paper we propose a parametric model for the membership function that is usually defined in the fuzzy approach to poverty analysis called IFR (Integrated Fuzzy and Relative). Our proposal may be added to the present literature because we are interested to the overall shape of the membership function instead of using only empirical average values as is usually done. This approach allows us to give an economic interpretation of the parameters involved in the theoretical distribution that makes the comparison between monetary and non monetary indicators and among several populations easier. Empirical results show significant differences in monetary and non-monetary poverty between Southern and Northern regions in Italy.

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