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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. Foster, James E & Shorrocks, Anthony F, 1991. "Subgroup Consistent Poverty Indices," Econometrica, Econometric Society, vol. 59(3), pages 687-709, May.
  2. Jean-Yves Duclos & Abdelkrim Araar & John Giles, 2006. "Chronic and Transient Poverty: Measurement and Estimation, with Evidence from China," Cahiers de recherche 0611, CIRPEE.
  3. 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.
  4. Davies James & Hoy Michael, 1994. "The Normative Significance of Using Third-Degree Stochastic Dominance in Comparing Income Distributions," Journal of Economic Theory, Elsevier, vol. 64(2), pages 520-530, December.
  5. Jean-Yves Duclos & David E. Sahn & Stephen D. Younger, 2006. "Robust Multidimensional Poverty Comparisons," Economic Journal, Royal Economic Society, vol. 116(514), pages 943-968, October.
  6. 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.
  7. Zheng, Buhong, 1997. " Aggregate Poverty Measures," Journal of Economic Surveys, Wiley Blackwell, vol. 11(2), pages 123-62, June.
  8. 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.
  9. Shorrocks, A F, 1980. "The Class of Additively Decomposable Inequality Measures," Econometrica, Econometric Society, vol. 48(3), pages 613-25, April.
  10. Shorrocks, Anthony F & Foster, James E, 1987. "Transfer Sensitive Inequality Measures," Review of Economic Studies, Wiley Blackwell, vol. 54(3), pages 485-97, July.
  11. Grimm, Michael & Gräb, Johannes, 2007. "Robust Multiperiod Poverty Comparisons," Proceedings of the German Development Economics Conference, Göttingen 2007 8, Verein für Socialpolitik, Research Committee Development Economics.
  12. Buhong Zheng, 1999. "On the power of poverty orderings," Social Choice and Welfare, Springer, vol. 16(3), pages 349-371.
  13. James E. Foster, 2007. "A Class of Chronic Poverty Measures," Vanderbilt University Department of Economics Working Papers 0701, Vanderbilt University Department of Economics.
  14. Dardanoni Valentino, 1993. "Measuring Social Mobility," Journal of Economic Theory, Elsevier, vol. 61(2), pages 372-394, December.
  15. 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.
  16. Cesar Calvo & Stefan Dercon, 2007. "Chronic Poverty and All That: The Measurement of Poverty over Time," Economics Series Working Papers WPS/2007-04, University of Oxford, Department of Economics.
  17. 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.
  18. Rubin Saposnik, 1981. "Rank-dominance in income distributions," Public Choice, Springer, vol. 36(1), pages 147-151, January.
  19. Jalan, Jyotsna & Ravallion, Martin, 1998. "Determinants of transient and chronic poverty : evidence from rural China," Policy Research Working Paper Series 1936, The World Bank.
  20. 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..
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Citations

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Cited by:
  1. Carlos Gradín & Coral Del Río & Olga Cantó, 2012. "Measuring Poverty Accounting For Time," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 58(2), pages 330-354, 06.
  2. Michael Hoy & Brennan Thompson & Buhong Zheng, 2012. "Empirical issues in lifetime poverty measurement," Journal of Economic Inequality, Springer, vol. 10(2), pages 163-189, June.
  3. Luc Christiaensen & Anthony Shorrocks, 2012. "Measuring poverty over time," Journal of Economic Inequality, Springer, vol. 10(2), pages 137-143, June.
  4. 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.
  5. Maria Emma Santos, 2012. "Measuring Chronic Poverty," OPHI Working Papers ophiwp052, Queen Elizabeth House, University of Oxford.
  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. Aaron Nicholas & Ranjan Ray & Kompal Sinha, 2013. "A Dynamic Multidimensional Measure of Poverty," Development Research Unit Working Paper Series 25-13, Monash University, Department of Economics.
  8. 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.

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