Measuring poverty level of households by using fuzzy logic

Hakan Pabuçcu, Rüveyde Pabuçcu

Abstract


Poverty is general scarcity or the state of one who lacks a certain amount of material possessions or money. Poverty is a multifaceted concept, which includes social, economic, and political elements. Poverty level can be calculated for households as well as for countries. United Nations (UN) developed a methodology to calculate the advanced poverty index for countries. The main purpose of this study is primarily determine the determinants of poverty by conducting a strong literature survey and examining the UN methodology. By using the determinants of poverty, it is planned to calculate poverty index and classify the households with an approach based on fuzzy logic and statistics. The methodology to be applied foresees the weighting of the determinants of poverty by using fuzzy logic membership functions and the calculation of the index of households with a weighted average. The weighting process of the determinants have recognized by taking the opinions of the expert academicians in field of poverty it is also considered to categorize the households according to the level of poverty. For this purpose, the method have been applied to a sample consisting of 120 households in Bayburt province. As a result of the analysis, it is aimed to examine the effect of factors determining the poverty and also provide suggestions to the researchers and policy makers.

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