Counting and Accounting: Measuring the Effectiveness of Fiscal Policy in Multidimensional Poverty Reduction
In this paper we propose indicators of impact and spending effectiveness of fiscal interventions for multidimensional poverty reduction. We bring together CEQ’s fiscal incidence methodology with OPHI’s multidimensional poverty methodology, using an MPI with the ?0 structure as the metric for evaluation. The effectiveness indicators in the multidimensional case need to simultaneously consider the best allocation of money across dimensions (which deprivations to lift?) and across households (to whom should they be lifted?).