Multidimensional poverty indices and first order dominance techniques : an empirical comparison of different approaches

In this paper we contrast different perspectives to the measurement of multidimensional poverty. Using data from 38 Demographic and Health Surveys around the developing world, we have compared the performance of two broad approaches: multidimensional poverty indices and first order dominance techniques (FOD). Our empirical findings suggest that the FOD approach might be a reasonable cost-effective alternative to the United Nations Development Program (UNDP)'s flagship poverty indicator: the Multidimensional Poverty Index (MPI). To the extent that the FOD approach is able to uncover the socio-economic gradient that exists between countries, it can be proposed as a viable alternative to the MPI with the advantage of not having to rely on the somewhat arbitrary and normatively binding assumptions that underpin the construction of UNDP's index