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This analytical tool illustrates one of the most popular welfare-based measures of inequality, the Atkinson Index . In particular, it discusses the foundations of this Index, in terms of social welfare specifications, and the concept of equally distributed equivalent income on which the measure is based. The use of this measure is then exemplified in a step-by-step procedure and in a numerical example. For further information, see also: Impacts of Policies on Poverty: Distributional Poverty Measures Poverty Analysis: Poverty and Dominance Social Welfare Analysis of Income Distributions: Social Welfare, Social Welfare Functions and Inequality Aversion This paper is part of the FAO Policy series: EASYPol-Resources [...]

There are four main reasons for which agriculture in sub-Saharan Africa (SSA) deserves more public support.  First is a moral imperative: SSA governments cannot and should not ignore a sector on which about 70 percent of their population directly depend for their livelihoods, if they are serious about their commitment to MDG1. Second, in spite of their generally poor performance, SSA countries do not have any realistic strategic option that they can rely upon for achieving sustainable economic development, other than agriculture. Third, there is evidence that appropriate policies and direct public sector investment have combined to trigger agriculture sector-led [...]

This analytical tool illustrates how to use objective methods to derive Equivalence scales. The focus will be on the Engel method, on the Rothbarth method and on the Utility-based methods. The main difference between these methods is that the first two are based on proxy variables for the household well-being, while the last set of methods is based on the consideration of the overall preferences revealed by consumers. For further information, see also: Equivalence Scales: General Aspects. EASYPol Series 032 Equivalence Scales. Subjective Methods. EASYPol Series 033 This paper is part of a FAO Policy series: EASYPol-Resources for policy making (in agriculture, rural development [...]

This analytical tool illustrates how to use subjective methods to derive equivalence scales. Different methods exist, but the focus will be on parametric methods. These methods are based on the definition of two broad sets of parameters. The first defines the degree of economies of scale within any given household; the second defines how much any further member adds to the cost of running a family. As we will see, the two concepts are linked, giving rise to a variety of ways to parameterise equivalence scales. For further information, see also: Impacts of Policies on Poverty. The Definition of Poverty. EASYPol Series [...]

This analytical tool illustrates how inequality and poverty analysis may be carried out when the income distribution is defined over households (i.e. household incomes) and not over individuals (i.e. individual incomes). When household incomes are considered, a problem arises with regard to the possibility of comparing monetary incomes of different households with different numbers of inhabitants. In this case, and as described in this module, a correction should be made to meaningfully compare different situations. This correction is called an equivalence scale. An equivalence scale may be a simple per capita measure or a more sophisticated way to take into [...]

This paper examines the main characteristics of agricultural inputs and marketing services, including factors affecting demand and supply for major categories of services, namely fertilizers and chemicals, seeds and planting materials, agricultural machinery and equipment, and crop marketing. The main sources of market failure are outlined. The conceptual framework which underpin the main approaches to decentralization of these services and key factors that need to be considered are next discussed. The importance of the regulatory role and adoption of a regulatory strategy are highlighted. Policy implications, in terms of possible options for decentralization (divestment, deconcentration, devolution and establishing partnerships), and [...]

This analytical tool illustrates advanced ways to measure poverty. It belongs to a set of EASYPol modules that discuss how to measure poverty according to different perspectives. In particular, this module will deal with generalised poverty gap measures, i.e. those poverty measures based on the definition of the poverty gap. The Sen index, the Foster-Greer-Thorbecke index, the Kakwani index and the Thon index will be discussed. Many public policies may have an impact on poor people. In policy work it is therefore important to simulate the impact of alternative policies on poverty and to rank policy options according to a wide range of poverty measures. This paper will [...]

This analytical tool illustrates advanced ways to measure poverty. It belongs to a set of modules that discuss how to measure poverty according to different perspectives. In particular, this module will deal with distributional poverty measures, i.e. those poverty measures based on some inequality measures. The Sen-Kakwani index, the Blackorby-Donaldson index and the Takayama index will be discussed. Many public policies may have an impact on poor people. In policy work it is therefore important to simulate the impact of alternative policies on poverty and to rank policy options according to a wide range of poverty measures. This module will provide the framework for such an analysis.  For more [...]

This analytical tool illustrates on what basis a poverty index should be chosen. In particular, it discusses the desirable properties that a poverty index should respect. These desirable properties are called axioms. Four classes of axioms will be discussed: focus axioms  monotonicity axioms transfer axioms symmetry axioms As users will see, there is no single measure of poverty that respects all axioms at the same time. Choosing a poverty measure may therefore imply a trade-off between different aims. This paper is part of a FAO Policy series: EASYPol-Resources for policy making (in agriculture, rural development and food security). To find other EASYPol series' resources, go to [...]

This analytical tool describes two of the most commonly used poverty measures in applied policy works, i.e., the headcount ratio (HR) and the poverty gap (PG) ratio. These are basic poverty indicators used to investigate impacts of public policies on poverty. After providing a conceptual background to HR and PG, this module describes step-by-step procedures and provides numerical examples to calculate these measures. In addition, advantages and shortcomings of these measures are discussed, and their explanatory power is investigated. For more information, see also: Impacts of Policies on Poverty. The Definition of Poverty. EASYPol Series 004 Impacts of Policies on Poverty. Absolute Poverty [...]