Abstract
This chapter provides a step-by-step account of how fuzzy measures of both non-monetary deprivation and monetary poverty can be constructed using survey data such as that from the EU-SILC (European Union-Statistics on Income and Living Conditions). In the case of non-monetary deprivation, meaning dimensions or groupings of initial items of deprivation are identified using explanatory and confirmatory factor analyses, and a weighting system is applied to ensure the aggregation of individual items into the dimension they represent. An application of the proposed methodology is conducted using EU-SILC 2007 data from Turkey: estimates are provided at national level and also disaggregated at regional (NUTS1) level.
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