The paper examines the problem of optimal targeting when households differ in needs. Additively decomposable poverty measures based on the households' deprivation are employed. Needs are modelled carefully: household size and needs are reflected by equivalence scales and weights. The paradox of...

If the social welfare of households of different demographic type has to be evaluated, the author observes considerable disagreement about the way the composition of households is to be taken into account. This paper makes an attempt to differentiate some of the various approaches. It deals with...