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Econ2D03 Assignment 3, Yang, Zhi Xing 0966680.pdf

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Rashid Khan

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Assignment #3 Student: Yang, ZhiXing Student ID: 0966680 Question #1: a) What are the three components of global hunger index? The Global Hunger Index (HGI) is a combined measure of three equally weighted components. The first one is the proportion of undernourished people as a percentage of population. The second one is the prevalence of underweight in children under the age if five. And the last one is the under-five mortality rate. b) What causes chronic poverty? What can be done to fight chronic poverty? Chronic poverty is a forward-looking concept, which relates to lifetime deprivation. Causes of chronic poverty have traditionally centered around poverty-trap, which is generally linked to the paucity of initial wealth and endowments. To fight for the chronic poverty, we need to act on the endowment ends first. It may be most-effective and durable method of tackling chronic poverty. We may need redistribution of assets, opening up opportunities for people in chronic poverty, special programs for enhancing human capital of specific groups, removing various kinds of entry barriers that certain groups of people face while trying to access markets and government services. We need to remove or reduce structural mismatch and bring massive long-term institutional supports. c) What is the distinction between head-count ratio (H) and aggregate headcount number (A) in poverty? Which measurement demonstrates the “likelihood” of falling into poverty in a country? The headcount ratio, H, is the proportion of poor in the total population. An alternative, a far less routinely used headcount index, is the aggregate headcount, A, which is the total absolute number of the poor. Headcount ratio (H) satisfies the “Likelihood Principle”, while aggregate headcount (
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