Economics · Poverty Measurement Metrics
The Headcount Ratio of poverty measurement is criticized for violating the monotonicity and transfer axioms. What does this mean?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The headcount ratio double-counts individuals who are deprived in multiple dimensions
- 2The headcount ratio increases when the poverty line is lowered by government policy
- 3A transfer of income from a poor person to a richer poor person, or a deepening of poverty without crossing the line, leaves the headcount ratio unchanged✓
- 4The headcount ratio cannot be computed for countries with incomplete census data
Correct answer
A transfer of income from a poor person to a richer poor person, or a deepening of poverty without crossing the line, leaves the headcount ratio unchanged
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