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Intertemporal Poverty Measurement: Tradeoffs and Policy Options

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  • Catherine Porter
  • Natalie Na¨ıri Quinn

Abstract

This paper makes three contributions to the literature on intertemporal poverty measurement, in particular the aggregation of a measure of wellbeing over time and across people. Firstly we conduct an exhaustive analysis of properties of intertemporal poverty measures, identifying relationships between the functional form and properties of ITPMs and identifying the tradeoffs and compatibilities that exist between the properties. We link this to the normative choices a poverty analyst must make when measuring intertemporal poverty. We also determine a ‘recipe’ which may be used to construct poverty measures with properties desired by the poverty analyst. Second, we apply the recipe to construct a new family of intertemporal poverty measures with the desired property of increasing compensation, a property that has thus far not been discussed in the literature. Third, we calculate measures from the new family and compare them to other measures recently proposed in the literature, to evaluate poverty in rural Ethiopia in the period 1994 - 2004.

Suggested Citation

  • Catherine Porter & Natalie Na¨ıri Quinn, 2008. "Intertemporal Poverty Measurement: Tradeoffs and Policy Options," CSAE Working Paper Series 2008-21, Centre for the Study of African Economies, University of Oxford.
    • Handle: RePEc:csa:wpaper:2008-21
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    References listed on IDEAS

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    1. Dercon, Stefan (ed.), 2004. "Insurance Against Poverty," OUP Catalogue, Oxford University Press, number 9780199276837, Decembrie.
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    Cited by:

    1. Walter Bossert & Satya R. Chakravarty & Conchita D’Ambrosio, 2019. "Poverty and Time," Themes in Economics, in: Satya R. Chakravarty (ed.), Poverty, Social Exclusion and Stochastic Dominance, pages 63-82, Springer.
      • BOSSERT, Walter & CHAKRAVARTY, Satya R. & D’AMBROSIO, Conchita, 2008. "Poverty and Time," Cahiers de recherche 05-2008, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
      • BOSSERT, Walter & CHAKRAVARTY, Satya R. & D’AMBROSIO, Conchita, 2008. "Poverty and Time," Cahiers de recherche 2008-05, Universite de Montreal, Departement de sciences economiques.
      • Walter Bossert & Satya R. Chakravarty & Conchita D'Ambrosio, 2010. "Poverty and Time," WIDER Working Paper Series wp-2010-074, World Institute for Development Economic Research (UNU-WIDER).
      • Walter Bossert & Satya R. Chakravarty & Conchita D’Ambrosio, 2008. "Poverty and Time," Working Papers 87, ECINEQ, Society for the Study of Economic Inequality.
    2. Cesar Calvo & Stefan Dercon, 2013. "Vulnerability to individual and aggregate poverty," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 41(4), pages 721-740, October.
    3. Thomas, Anne-Claire & Gaspart, Frédéric, 2015. "Does Poverty Trap Rural Malagasy Households?," World Development, Elsevier, vol. 67(C), pages 490-505.
    4. Walelign, Solomon Zena & Charlery, Lindy & Smith-Hall, Carsten & Chhetri, Bir Bahadur Khanal & Larsen, Helle Overgaard, 2016. "Environmental income improves household-level poverty assessments and dynamics," Forest Policy and Economics, Elsevier, vol. 71(C), pages 23-35.
    5. Maria Emma Santos, 2012. "Measuring Chronic Poverty," OPHI Working Papers 52, Queen Elizabeth House, University of Oxford.
    6. 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, June.
    7. Catherine Porter & Natalie Nairi Quinn, 2012. "Normative Choices and Tradeoffs when Measuring Poverty over Time," OPHI Working Papers 56, Queen Elizabeth House, University of Oxford.
    8. repec:dau:papers:123456789/10594 is not listed on IDEAS
    9. -, 2009. "The status of millennium development goals: monitoring and reporting in selected Caribbean countries," Sede Subregional de la CEPAL para el Caribe (Estudios e Investigaciones) 38688, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    10. Jennifer Fernández-Ramos & Ana K. Garcia-Guerra & Jorge Garza-Rodriguez & Gabriela Morales-Ramirez, 2016. "The dynamics of poverty transitions in Mexico," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 43(11), pages 1082-1095, November.
    11. Indranil Dutta & Laurence Roope & Horst Zank, 2013. "On intertemporal poverty measures: the role of affluence and want," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 41(4), pages 741-762, October.

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