Reino Unido
Poverty is a multidimensional concept often comprising a monetary outcome and other welfare dimensions such as education, subjective well-being or health, that are measured on an ordinal scale. In applied research, multidimensional poverty is ubiquitously assessed by studying each poverty dimension independently in univariate regression models or by combining several poverty dimensions into a scalar index. This inhibits a thorough analysis of the potentially varying interdependence between the poverty dimensions. We propose a multivariate copula generalized additive model for location, scale and shape (copula GAMLSS or distributional copula model) to tackle this challenge and we demonstrate its power by studying two important poverty dimensions: income and education. Since the level of education is often measured on an ordinal scale and income is continuous, we extend the bivariate copula GAMLSS to the case of mixed ordered-continuous outcomes. The new model is integrated into the GJRM package in R and applied to data from Indonesia.
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