Income Fluctuation, Poverty and Well-Being Over Time: Theory and Application to Argentina
AbstractThis paper studies poverty as a dynamic phenomenon, motivated by the recurringeconomic crises that affect developing countries and the incidence of income fluctuationson household welfare. While the increasing availability of household panel data has beenexploited in theoretical analysis and empirical applications, the methodological andapplied literatures still lack a unified framework. Echoing Atkinson (1987), this paperaddresses the question of how poverty should be measured over time - or, in moregeneral terms, how to measure well-being based on repeated observations of householdincome. The paper develops and illustrates a set of tools for empirical work based ontheoretically sound extensions of the existing methodology for static distributionalanalysis. Moreover, this framework encompasses some of the existing approaches asspecial cases. These tools are illustrated with longitudinal data for Argentina in the 1995-2002 period, which is well suited for this type of analysis given the large fluctuations inhousehold income due to the repeated economic crises in the country.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Suntory and Toyota International Centres for Economics and Related Disciplines, LSE in its series STICERD - Distributional Analysis Research Programme Papers with number 76.
Date of creation: Jul 2005
Date of revision:
Contact details of provider:
Web page: http://sticerd.lse.ac.uk/_new/publications/default.asp
Risk; Income Fluctuations; Panel Data; Poverty Measurement; Argentina;
Other versions of this item:
- Guillermo Cruces, 2005. "Income Fluctuations, Poverty and Well-Being Over Time: Theory and Application to Argentina," Labor and Demography 0502007, EconWPA.
- D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
- I32 - Health, Education, and Welfare - - Welfare and Poverty - - - Measurement and Analysis of Poverty
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Besley, Timothy, 1995.
"Savings, credit and insurance,"
Handbook of Development Economics,
in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 3, chapter 36, pages 2123-2207
- Newbery, David M, 1989. "The Theory of Food Price Stabilisation," Economic Journal, Royal Economic Society, vol. 99(398), pages 1065-82, December.
- Martin Browning & Annamaria Lusardi, 1995.
"Household Saving: Micro Theories and Micro Facts,"
Department of Economics Working Papers
1995-02, McMaster University.
- Sebastian Galiani & Daniel Heymann & Mariano Tommasi, 2003. "Great Expectations and Hard Times: The Argentine Convertibility Plan," Journal of LACEA Economia, LACEA - LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION.
- Blackorby, Charles & Donaldson, David, 1987. "Welfare ratios and distributionally sensitive cost-benefit analysis," Journal of Public Economics, Elsevier, vol. 34(3), pages 265-290, December.
- Dreze, Jacques H. & Modigliani, Franco, 1972. "Consumption decisions under uncertainty," Journal of Economic Theory, Elsevier, vol. 5(3), pages 308-335, December.
- Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May.
- Ligon, Ethan & Laura Schechter, 2002.
Royal Economic Society Annual Conference 2002
128, Royal Economic Society.
- Sandmo, Agnar, 1970. "The Effect of Uncertainty on Saving Decisions," Review of Economic Studies, Wiley Blackwell, vol. 37(3), pages 353-60, July.
- Kahneman, Daniel & Wakker, Peter P & Sarin, Rakesh, 1997. "Back to Bentham? Explorations of Experienced Utility," The Quarterly Journal of Economics, MIT Press, vol. 112(2), pages 375-405, May.
- Miles S. Kimball, 1989.
"Precautionary Saving in the Small and in the Large,"
NBER Working Papers
2848, National Bureau of Economic Research, Inc.
- Kimball, Miles S, 1990. "Precautionary Saving in the Small and in the Large," Econometrica, Econometric Society, vol. 58(1), pages 53-73, January.
- Ravallion, Martin, 1988. "Expected Poverty under Risk-Induced Welfare Variability," Economic Journal, Royal Economic Society, vol. 98(393), pages 1171-82, December.
- Lanjouw, Peter & Ravallion, Martin, 1995.
"Poverty and Household Size,"
Royal Economic Society, vol. 105(433), pages 1415-34, November.
- Milton Friedman & L. J. Savage, 1948. "The Utility Analysis of Choices Involving Risk," Journal of Political Economy, University of Chicago Press, vol. 56, pages 279.
- Jalan, Jyotsna & Ravallion, Martin, 1998. "Transient Poverty in Postreform Rural China," Journal of Comparative Economics, Elsevier, vol. 26(2), pages 338-357, June.
- Paul MAKDISSI & Quentin WODON & Guillermo Cruces, 2003.
"Poverty Measurement Under Risk Aversion Using Panel Data,"
Cahiers de recherche
03-06, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke.
- Cruces Guillermo & Makdissi Paul & Wodon Quentin T., 2004. "Poverty Measurement Under Risk Aversion Using Panel Data," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 3(1), pages 1-20, September.
- Coulter, Fiona A E & Cowell, Frank A & Jenkins, Stephen P, 1992. "Differences in Needs and Assessment of Income Distributions," Bulletin of Economic Research, Wiley Blackwell, vol. 44(2), pages 77-124, April.
- Kurosaki, Takashi, 2003. "Measurement of Chronic and Transient Poverty: Theory and Application to Pakistan," Discussion Paper Series a436, Institute of Economic Research, Hitotsubashi University.
- Hammond, Peter J., 1975. "A note on extreme inequality aversion," Journal of Economic Theory, Elsevier, vol. 11(3), pages 465-467, December.
- Milne, Frank & Shefrin, H M, 1988. "Ex Post Efficiency and Ex Post Welfare: Some Fundamental Considerations," Economica, London School of Economics and Political Science, vol. 55(217), pages 63-79, February.
- repec:ner:dauphi:urn:hdl:123456789/4330 is not listed on IDEAS
- Hoy, Michael & Zheng, Buhong, 2011.
"Measuring lifetime poverty,"
Journal of Economic Theory,
Elsevier, vol. 146(6), pages 2544-2562.
- Johannes Gräb & Michael Grimm, 2007.
"Robust Multiperiod Poverty Comparisons,"
Ibero America Institute for Econ. Research (IAI) Discussion Papers
160, Ibero-America Institute for Economic Research.
- Grimm, Michael & Gräb, Johannes, 2007. "Robust Multiperiod Poverty Comparisons," Proceedings of the German Development Economics Conference, GÃ¶ttingen 2007 8, Verein für Socialpolitik, Research Committee Development Economics.
- Johannes Gräb & Michael Grimm, 2007. "Robust Multiperiod Poverty Comparisons," Discussion Papers of DIW Berlin 725, DIW Berlin, German Institute for Economic Research.
- Johannes Gräb & Michael Grimm, 2007. "Robust Multiperiod Poverty Comparisons," Working Papers DT/2007/12, DIAL (Développement, Institutions et Mondialisation).
- Nwankwo, Uche M. & Wolfgang, Bokelmann, 2008. "The Effect of Information and Market Access on Adopters' Income Level," 108th Seminar, February 8-9, 2008, Warsaw, Poland 48101, European Association of Agricultural Economists.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.