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On measuring vulnerability to poverty

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  • Indranil Dutta

    ()

  • James Foster
  • Ajit Mishra

Abstract

There is a growing interest on dynamic and broader concepts of deprivation such as vulnerability, which takes in to account the destitution of individuals from future shocks. We use the framework of decision making under uncertainty to arrive at a new measure of vulnerability to poverty. We highlight the importance of current standard of living to better capture the notion of vulnerability. In conceptualizing the new class of measures of vulnerability we thus move beyond the standard expected poverty measures that is commonly found in the literature. We also axiomatically characterize the new class of measure and discuss some of its properties.

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Bibliographic Info

Article provided by Springer in its journal Social Choice and Welfare.

Volume (Year): 37 (2011)
Issue (Month): 4 (October)
Pages: 743-761

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Handle: RePEc:spr:sochwe:v:37:y:2011:i:4:p:743-761

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References

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  1. Ethan Ligon & Laura Schechter, 2003. "Measuring Vulnerability," Economic Journal, Royal Economic Society, vol. 113(486), pages C95-C102, March.
  2. Morduch, J., 1995. "Poverty and Vulnerability," Papers 477, Harvard - Institute for International Development.
  3. Foster, James E, 1998. "Absolute versus Relative Poverty," American Economic Review, American Economic Association, vol. 88(2), pages 335-41, May.
  4. Stefan Dercon & Pramila Krishnan, 1997. "In sickness and in health... risk-sharing within households in rural Ethiopia," Economics Series Working Papers WPS/1997-12, University of Oxford, Department of Economics.
  5. Basu, Kaushik & Nolen, Patrick, 2004. "Vulnerability, Unemployment and Poverty: A New Class of Measures, Its Axiomatic Properties and Application," Working Papers 04-07, Cornell University, Center for Analytic Economics.
  6. Luc J. Christiaensen & Kalanidhi Subbarao, 2005. "Towards an Understanding of Household Vulnerability in Rural Kenya," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 14(4), pages 520-558, December.
  7. Hoddinott, John & Quisumbing, Agnes, 2003. "Methods for microeconometric risk and vulnerability assessments," Social Protection Discussion Papers 29138, The World Bank.
  8. Sen, Amartya K, 1976. "Poverty: An Ordinal Approach to Measurement," Econometrica, Econometric Society, vol. 44(2), pages 219-31, March.
  9. Cesar Calvo & Stefan Dercon, 2005. "Measuring Individual Vulnerability," Economics Series Working Papers 229, University of Oxford, Department of Economics.
  10. Shubham Chaudhuri & Jyotsna Jalan & Asep Suryahadi, 2002. "Assessing household vulnerability to poverty from cross-sectional data: A methodology and estimates from Indonesia," Discussion Papers 0102-52, Columbia University, Department of Economics.
  11. Menezes, C & Geiss, C & Tressler, J, 1980. "Increasing Downside Risk," American Economic Review, American Economic Association, vol. 70(5), pages 921-32, December.
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Citations

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Cited by:
  1. G.nther, Isabel & Maier, Johannes, 2013. "Poverty, vulnerability, and reference dependent utility," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  2. Nuno Crespo & Sandrina B. Moreira & Nádia Simões, 2012. "An Integrated Approach for the Measurement of Inequality, Poverty and Richness," Working Papers Series 2 12-03, ISCTE-IUL, Business Research Unit (BRU-IUL).
  3. Celidoni, Martina, 2011. "Vulnerability to poverty: An empirical comparison of alternative measures," MPRA Paper 33002, University Library of Munich, Germany.
  4. Markus Jäntti & Ravi Kanbur & Milla Nyyssölä & Jukka Pirttilä, 2013. "Poverty and Welfare Measurement on the Basis of Prospect Theory," CESifo Working Paper Series 4095, CESifo Group Munich.
  5. Kurosaki, Takashi, 2012. "Household-level Recovery after Floods in a Developing Country: Evidence from Pakistan," CEI Working Paper Series 2012-08, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
  6. Kurosaki, Takashi, 2013. "Vulnerability of Household Consumption to Floods and Droughts in Developing Countries: Evidence from Pakistan," CEI Working Paper Series 2012-10, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
  7. Kurosaki, Takashi, 2013. "Dynamics of Household Assets and Income Shocks in the Long-run Process of Economic Development: The Case of Rural Pakistan," PRIMCED Discussion Paper Series 39, Institute of Economic Research, Hitotsubashi University.
  8. Cesar Calvo & Stefan Dercon, 2013. "Vulnerability to individual and aggregate poverty," Social Choice and Welfare, Springer, vol. 41(4), pages 721-740, October.

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