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Measuring lifetime poverty

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  • Hoy, Michael
  • Zheng, Buhong

Abstract

This paper presents an axiomatic framework for measuring lifetime poverty over multiple periods. For an individual, we argue that lifetime poverty is influenced by both the “snapshot” poverty of each period and the poverty level of the “permanent” lifetime consumption; it is also influenced by how poverty spells are distributed over the lifetime. We axiomatically characterize classes of lifetime poverty indices and derive dominance conditions of poverty orderings for both individual and societal lifetime poverty measurements.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Economic Theory.

Volume (Year): 146 (2011)
Issue (Month): 6 ()
Pages: 2544-2562

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Handle: RePEc:eee:jetheo:v:146:y:2011:i:6:p:2544-2562

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Web page: http://www.elsevier.com/locate/inca/622869

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Keywords: Lifetime poverty; Snapshot poverty; Chronic poverty; Poverty measurement;

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References

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  1. Davies, James & Hoy, Michael, 1995. "Making Inequality Comparisons When Lorenz Curves Intersect," American Economic Review, American Economic Association, vol. 85(4), pages 980-86, September.
  2. Hoy, M. & Davies, J., 1991. "The Normative Significance of Using Third-Degree Stochastic Dominance in Comparing Income Distributions," Working Papers 1991-8, University of Guelph, Department of Economics and Finance.
  3. Shorrocks, Anthony F & Foster, James E, 1987. "Transfer Sensitive Inequality Measures," Review of Economic Studies, Wiley Blackwell, vol. 54(3), pages 485-97, July.
  4. Johannes Gräb & Michael Grimm, 2007. "Robust Multiperiod Poverty Comparisons," Discussion Papers of DIW Berlin 725, DIW Berlin, German Institute for Economic Research.
  5. Duclos, Jean-Yves & Araar, Abdelkrim & Giles, John T., 2006. "Chronic and Transient Poverty: Measurement and Estimation, with Evidence from China," IZA Discussion Papers 2078, Institute for the Study of Labor (IZA).
  6. Karcher, T. & Moyes, P. & Trannoy, Y., 1993. "The Stochastic Dominance Ordering of Income Distributions of Over Time. I," Papers 9304, Paris X - Nanterre, U.F.R. de Sc. Ec. Gest. Maths Infor..
  7. Duclos, Jean-Yves & Sahn, David & Younger, Stephen D., 2001. "Robust Multidimensional Poverty Comparisons," Cahiers de recherche 0115, Université Laval - Département d'économique.
  8. Rubin Saposnik, 1981. "Rank-dominance in income distributions," Public Choice, Springer, vol. 36(1), pages 147-151, January.
  9. Zheng, Buhong, 1997. " Aggregate Poverty Measures," Journal of Economic Surveys, Wiley Blackwell, vol. 11(2), pages 123-62, June.
  10. Jyotsna Jalan & Martin Ravallion, 2000. "Is transient poverty different? Evidence for rural China," Journal of Development Studies, Taylor & Francis Journals, vol. 36(6), pages 82-99.
  11. Cesar Calvo & Stefan Dercon, 2007. "Chronic Poverty and All That: The Measurement of Poverty over Time," CSAE Working Paper Series 2007-04, Centre for the Study of African Economies, University of Oxford.
  12. Foster, James E & Shorrocks, Anthony F, 1991. "Subgroup Consistent Poverty Indices," Econometrica, Econometric Society, vol. 59(3), pages 687-709, May.
  13. Guillermo Cruces, 2005. "Income Fluctuation, Poverty and Well-Being Over Time: Theory and Application to Argentina," STICERD - Distributional Analysis Research Programme Papers 76, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
  14. Bob Baulch & John Hoddinott, 2000. "Economic mobility and poverty dynamics in developing countries," Journal of Development Studies, Taylor & Francis Journals, vol. 36(6), pages 1-24.
  15. Joan R. Rodgers & John L. Rodgers, 1993. "Chronic Poverty in the United States," Journal of Human Resources, University of Wisconsin Press, vol. 28(1), pages 25-54.
  16. James E. Foster, 2007. "A Class of Chronic Poverty Measures," Vanderbilt University Department of Economics Working Papers 0701, Vanderbilt University Department of Economics.
  17. Shorrocks, A F, 1980. "The Class of Additively Decomposable Inequality Measures," Econometrica, Econometric Society, vol. 48(3), pages 613-25, April.
  18. Jalan, Jyotsna & Ravallion, Martin, 1998. "Determinants of transient and chronic poverty : evidence from rural China," Policy Research Working Paper Series 1936, The World Bank.
  19. Dardanoni Valentino, 1993. "Measuring Social Mobility," Journal of Economic Theory, Elsevier, vol. 61(2), pages 372-394, December.
  20. Buhong Zheng, 1999. "On the power of poverty orderings," Social Choice and Welfare, Springer, vol. 16(3), pages 349-371.
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Citations

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Cited by:
  1. Aaron Nicholas & Ranjan Ray & Kompal Sinha, 2013. "Duration and Multidimensionality in Poverty Measurement," Economics Series 2013_9, Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance.
  2. Hoy, Michael & Scott B., Thompson & Zheng, Buhong, 2010. "Empirical Issues in Lifetime Poverty Measurement," Working Paper Series wp2010-73, World Institute for Development Economic Research (UNU-WIDER).
  3. Carlos Gradín & Coral del Río & Olga Cantó, 2010. "Measuring poverty accounting for time," Working Papers 169, ECINEQ, Society for the Study of Economic Inequality.
  4. Indranil Dutta & Laurence Roope & Horst Zank, 2013. "On intertemporal poverty measures: the role of affluence and want," Social Choice and Welfare, Springer, vol. 41(4), pages 741-762, October.
  5. Giovanni Marano & Gianni Betti & Francesca Gagliardi, 2014. "Latent class Markov models for addressing measurement problems in poverty dynamics," Department of Economics University of Siena 695, Department of Economics, University of Siena.
  6. BOSSERT, Walter & CERIANI, Lidia & CHAKRAVARTY, Satya R. & D'AMBROSIO, Conchita, 2012. "Intertemporal Material Deprivation," Cahiers de recherche 2012-06, Universite de Montreal, Departement de sciences economiques.
  7. Luc Christiaensen & Anthony Shorrocks, 2012. "Measuring poverty over time," Journal of Economic Inequality, Springer, vol. 10(2), pages 137-143, June.
  8. Maria Emma Santos, 2012. "Measuring Chronic Poverty," OPHI Working Papers ophiwp052, Queen Elizabeth House, University of Oxford.

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