On the Probability Density Functions of Forster-Greer-Thorbecke (FGT) Poverty Indices

Abstract

Distributional properties of poverty indices are generally unknown due to the fact that statistical inference for poverty measures are mostly ignored in the field of poverty analysis where attention
is usually based on identification and aggregation problems. This study considers the possibility of using Pearson system of distributions to approximate the probability density functions of
Forster-Greer-Thorbecke (FGT) poverty indices. The application of the Pearson system reveals the potentials of normal and four parameter distributions in poverty analysis.

Keywords: Distributional properties, Pearson system of distributions, FGT poverty
indices, Normal distribution, Four parameter beta distribution.