A new GLO Discussion Paper meets the challenge in making distributional comparisons with ordinal data.

GLO Discussion Paper No. 962, 2021

Measuring welfare, inequality and poverty with ordinal variables – Download PDF
by Silber, Jacques & Yalonetzky, Gaston

GLO Fellows Jacques Silber & Gaston Yalonetzky

Author Abstract: The key challenge in making distributional comparisons with ordinal data is the lack of commensurability of the distances between the ordered categories. This chapter provides a critical review of the most recent theoretical developments addressing this challenge and providing methods for ethical poverty, welfare, and inequality comparisons with univariate ordered multinomial distributions.

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