Explanation:

Due to various limitations in the official estimation of poverty, scholars have attempted to find alternative methods. For instance, Amartya Sen, noted Nobel Laureate, has developed in index known as Sen Index. There are other tools such as Poverty Gap Index and Squared Poverty Gap.
The Squared Poverty Gap Index determines the degree of poverty for a given area. This method squares the poverty gap for each individual/household, and thus puts more emphasis on observations that fall far short of the poverty line rather than those that are closer. This measure is a member of the
FGT (Foster, Greer, Thorbecke) family of poverty measures. The Squared Poverty Gap Index is very similar to the Poverty Gap Index because it also weights the poor basedon how poor they are. The headcount index (P0) measures the proportion of the population that is poor. It is popular because it is easy to understand and measure. But it does not indicate how  poor the poor are. The poverty gap index (P1) measures the extent to which individuals fall below the poverty line (the poverty gaps) as a proportion of the poverty line. The sum of hese poverty gaps gives the minimum cost
of eliminating poverty, if transfers were perfectly targeted. The measure does not reflect changes in inequality among the poor