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Vulnerability to Poverty

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  • Cesar Calvo
  • Stefan Dercon

Abstract

Standard poverty analysis makes statements about deprivation after the veil of uncertainty has been lifted. Nonetheless, the term 'vulnerability' has been used as a tool to remark that uncertainty and risk do matter. In this paper, we define 'vulnerability to poverty' as the magnitude of the threat of poverty, measured ex- ante, before uncertainty is resolved. We describe the desirable properties of a vulnerability measure as a set of axioms, and present a family of measures satisfying our desiderata at the individual level. We also propose a family of measures of aggregate vulnerability, a concept which has remained largely unexplored thus far.

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Bibliographic Info

Paper provided by Centre for the Study of African Economies, University of Oxford in its series CSAE Working Paper Series with number 2007-03.

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Date of creation: 2007
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Handle: RePEc:csa:wpaper:2007-03

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Keywords: vulnerability; poverty Impact;

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References

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  1. Stefan Dercon & John Hoddinott & Tassew Woldehanna, 2005. "Shocks and Consumption in 15 Ethiopian Villages, 1999--2004," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 14(4), pages 559-585, December.
  2. Ligon, Ethan & Laura Schechter, 2002. "Measuring Vulnerability," Royal Economic Society Annual Conference 2002 128, Royal Economic Society.
  3. Asep Suryahadi & Sudarno Sumarto, 2003. "Poverty and Vulnerability in Indonesia Before and After the Economic Crisis," Asian Economic Journal, East Asian Economic Association, vol. 17(1), pages 45-64, 03.
  4. Amin, S. & Rai, A.S. & Topa, G., 2000. "Does Microcredit Reach the Poor and Vulnerable? Evidence from Nothern Bangladesh," Papers 28, Chicago - Graduate School of Business.
  5. Chakravarty, Satya R., 1983. "A new index of poverty," Mathematical Social Sciences, Elsevier, vol. 6(3), pages 307-313, December.
  6. Ravallion, Martin, 1988. "Expected Poverty under Risk-Induced Welfare Variability," Economic Journal, Royal Economic Society, vol. 98(393), pages 1171-82, December.
  7. 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.
  8. Binswanger, Hans P, 1981. "Attitudes toward Risk: Theoretical Implications of an Experiment in Rural India," Economic Journal, Royal Economic Society, vol. 91(364), pages 867-90, December.
  9. Ralph L. Keeney, 1972. "Utility Functions for Multiattributed Consequences," Management Science, INFORMS, vol. 18(5-Part-1), pages 276-287, January.
  10. Scott F. Richard, 1975. "Multivariate Risk Aversion, Utility Independence and Separable Utility Functions," Management Science, INFORMS, vol. 22(1), pages 12-21, September.
  11. François Bourguignon & Satya Chakravarty, 2003. "The Measurement of Multidimensional Poverty," Journal of Economic Inequality, Springer, vol. 1(1), pages 25-49, April.
  12. Pollak, Robert A, 1979. "Bergson-Samuelson Social Welfare Functions and the Theory of Social Choice," The Quarterly Journal of Economics, MIT Press, vol. 93(1), pages 73-90, February.
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Cited by:
  1. Emiliano Magrini & Pierluigi Montalbano, 2012. "Trade openness and vulnerability to poverty: Vietnam in the long-run (1992-2008)," Working Paper Series 3512, Department of Economics, University of Sussex.
  2. 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.
  3. Völker, Marc & Tongruksawattana, Songporne & Hardeweg, Bernd & Waibel, Hermann, 2011. "Climate risk perception and ex-ante mitigation strategies of rural households in Thailand and Vietnam," Proceedings of the German Development Economics Conference, Berlin 2011 79, Verein für Socialpolitik, Research Committee Development Economics.
  4. World Bank, 2010. "Ethiopia : Re-Igniting Poverty Reduction in Urban Ethiopia through Inclusive Growth," World Bank Other Operational Studies 2921, The World Bank.
  5. Cesar Calvo & Stefan Dercon, 2013. "Vulnerability to individual and aggregate poverty," Social Choice and Welfare, Springer, vol. 41(4), pages 721-740, October.
  6. Narayan C Das & Farzana A Misha, 2010. "Addressing Extreme Poverty in a Sustainable Manner: Evidence from CFPR programme," Working Papers id:2723, eSocialSciences.
  7. Gallardo, Mauricio, 2013. "Using the downside mean-semideviation for measuring vulnerability to poverty," Economics Letters, Elsevier, vol. 120(3), pages 416-418.

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