Multidimensional Poverty Modeling for Namibia Using the Beta Distribution

Abstract

Despite global efforts in alleviating poverty, many people are still living in poverty. Different methods were employed to estimate poverty with many researchers moving from monetary to multidimensional poverty modeling approach. In Namibia, very few studies have been conducted to estimate poverty in a multidimensional sense. The 2015/2016 Namibia household income and expenditure survey dataset was employed to develop multidimensional poverty indices (MPIs) using beta distribution. We showed that the MPI is equivalent to the mean of the left truncated beta distribution. The results revealed that the northern regions of Namibia are the most affected by multidimensional poverty. The results from this study can be used to identify areas that are severely affected by poverty and consequently form a basis to develop appropriate measures intended to alleviate poverty.