Question

In what way the method of ‘Squared Poverty Gap Ratio’ an improvement over the
‘Poverty Gap Ratio’

Answer 1

The Squared Poverty Gap Index determines the degree of poverty for a given area. The method squares the poverty gap for each individuals and thus plus more emphasis on observations that fall far short of the poverty line rather than those that are closer. This measure is the number of the FGT family of poverty measures. The Poverty Gap Index is the measure of intensity of poverty. It is defined as the average poverty gap in the population as a proportion of the poverty line. The poverty gap index is an improvement over the poverty measure headcount ratio which simple counts all the poverty people below poverty line.

Answer 2

‘Squared Poverty Gap Ratio’ is an improvement over the  ‘Poverty Gap Ratio' as it focuses on poverty faced by every individual.

Explanation:

• Squared Poverty Gap Ratio: According to this method, the poverty gap is squared for every individual that puts a bigger emphasis on observations that are present far from the poverty line as compared to the ones that are closer.  
• Poverty Gap Ratio: This method is the mean of shortfall of the total population from the poverty line and is analyzed as the ratio of the poverty line. This ratio observes the depth of poverty as well as its occurrence.
• The more accurate method for calculation of poverty is the poverty gap ratio.

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