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This analytical tool addresses the most popular inequality index, the Gini index. It discusses its characteristics and the link with another popular graphical tool of representing inequality, the Lorenz Curve. Extended version of the Gini Index with different weighting schemes are also discussed. The use of the Gini Index and of its generalised versions is explained through a step-by-step procedure and numerical examples. For further information, see also: Charting Income Inequality. The Lorenz Curve. EASYPol Series 000 Impacts of Policies on Poverty. Basic Poverty Measures. EASYPol Series 007 Policy Impacts on Inequality: Inequality and Axioms for its Measurement. EASYPol Series 054 Policy Impacts on Inequality: [...]

The LogFrame method is an instrument employed by analysts, planners and managers for: problem analysis, objective formulation, planning, implementation, monitoring and evaluation of selected, objective-oriented interventions that aim at a change of reality from a situation which is perceived as negative towards a positive situation. Because of its general logic, the LogFrame method can be applied to any type of objective oriented tasks, irrespective of the nature, level of aggregation or complexity of the problem to be solved. Though originally developed as a method for project planning and management, the method and its methodological principles can analogously be applied to analysis, planning and management of programmes and [...]

Once a decision is taken to establish an MPI system, this module puts forward the aspects to be considered in organizing such a system and discusses possible institutional/organizational set ups. The following four organizational options are distinguished: Setting up an MPI capacity at central government level, but not directly affiliated to a line ministry; as a special unit in a line ministry (e.g. Ministry of Agriculture); as a separate project-type unit; as an external institution (research institute, NGO, consulting firm). Each of these options has special advantages and disadvantages. Which of the options is selected depends on the policy to be monitored, on the expectations from [...]

This paper presents the eight methodo-“logical” steps for monitoring policy impacts (MPI), comprising: Step 1: Initiation and preparation of MPI Step 2: Policy review and analysis Step 3: Development of the impact model Step 4: Selection of impact indicators Step 5: Research design Step 6: Information and data collection Step 7: Data compilation, processing and analysis Step 8: Feedback of results of MPI to policy makers, clients, public. It is pointed out that the eight steps represent a logical sequence but that the steps are closely interlinked and that there are likely possible feedback cycles to previous steps. In a concluding section, conditions for a practical application of MPI [...]

Monitoring Policy Impacts (MPI) is a policy management instrument, applied to improve the efficacy of policies in reaching their objectives. MPI identifies diversions of reality from plan when they occur, as well as the causes of such diversions, thus allowing immediate corrections, if required, and respective adjustments in policy design and implementation. With its special features – focussing on impacts at policy level, tracing of flaws, timeliness of recording and feed back - MPI is related to but distinct from other conventional monitoring and evaluation concepts, such as implementation monitoring, project and programme monitoring, and evaluations which are conducted ex-post [...]

This module documents calculation and use of Lorenz curves for inequality analysis. Specifically, it illustrates how Generalised Lorenz (GL) Curves can be used to identify the best income distribution on social welfare grounds within a set of alternative income distributions generated by different policy options where ordinary Lorenz curves fail to work. It is developed for capacity developent and operational purposes.

This analytical tool illustrates how some simple poverty measures may be linked with dominance conditions between particular types of curves. This strongly resembles the dominance conditions already set out in the case of Lorenz curves1. In particular, dominance conditions will be derived for the headcount ratio and for the Foster-Greer-Thorbecke (FGT) measures showing that, under certain conditions, the poverty line specification is not necessary. This module also introduces the concept of the Three I’s of Poverty (TIP) curve. As a way to analyse poverty, this module is based on a different approach to poverty measurement. Nor does it recourse to [...]

This analytical tool illustrates how to use objective methods to derive Equivalence scales. The focus will be on the Engel method, on the Rothbarth method and on the Utility-based methods. The main difference between these methods is that the first two are based on proxy variables for the household well-being, while the last set of methods is based on the consideration of the overall preferences revealed by consumers. For further information, see also: Equivalence Scales: General Aspects. EASYPol Series 032 Equivalence Scales. Subjective Methods. EASYPol Series 033 This paper is part of a FAO Policy series: EASYPol-Resources for policy making (in agriculture, rural development [...]

This analytical tool illustrates how to use subjective methods to derive equivalence scales. Different methods exist, but the focus will be on parametric methods. These methods are based on the definition of two broad sets of parameters. The first defines the degree of economies of scale within any given household; the second defines how much any further member adds to the cost of running a family. As we will see, the two concepts are linked, giving rise to a variety of ways to parameterise equivalence scales. For further information, see also: Impacts of Policies on Poverty. The Definition of Poverty. EASYPol Series [...]

This analytical tool illustrates how inequality and poverty analysis may be carried out when the income distribution is defined over households (i.e. household incomes) and not over individuals (i.e. individual incomes). When household incomes are considered, a problem arises with regard to the possibility of comparing monetary incomes of different households with different numbers of inhabitants. In this case, and as described in this module, a correction should be made to meaningfully compare different situations. This correction is called an equivalence scale. An equivalence scale may be a simple per capita measure or a more sophisticated way to take into [...]