New fuzzy indices of poverty by distinguishing three levels of poverty

In order to avoid a rigid poor/non-poor dichotomy (see e.g. Hagenaars, 1986), the fuzzy sets approach to poverty measurement has been used. The aim of this paper is to propose fuzzy measures of unidimensional and multidimensional poverty by distinguishing three levels of poverty. A methodological research is proposed as follows: first, the poor are analyzed by partitioning the total population in three mutually exclusive groups around the poverty line, and three levels of poverty are distinguished. Second, a general rule for the construction of different fuzzy measure unions (Zadeh, 1975) is proposed, that is, rules for the construction of overall poverty starting from different levels of poverty. Finally, classes of fuzzy measures of poverty referring to the overall population are suggested. An application using individual well-being data from Tunisian households in 1990 is presented to illustrate use of one of the proposed concepts.

Figure optionsDownload as PowerPoint slideResearch highlights
► Fuzzy logic may be a generalization of classic logic.
► Fuzzy logic is a form of multi-valued logic derived from fuzzy set theory.
► Fuzzy set theory defines set membership as a possibility distribution.
► Fuzzy sets are sets whose elements have degrees of membership.
► A fuzzy set operation is an operation on fuzzy sets.