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Chronic and Transient Poverty: Measurement and Estimation, with Evidence from China

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  • Jean-Yves Duclos
  • Abdelkrim Araar
  • John Giles

Abstract

The paper contributes to the measurement of poverty and vulnerability in three ways. First, we propose a new approach to separating poverty into chronic and transient components. Second, we provide corrections for the statistical biases introduced when using a small number of periods to estimate the importance of vulnerability and transient poverty. Third, we apply these tools to the measurement of chronic and transient poverty in China using a rich panel data set that extends over approximately 17 years. We find that alternative measurement techniques yield significantly different estimates of the relative importance of chronic and transient poverty, and that precision of estimates is enhanced with simple statistical corrections.

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File URL: http://www.cirpee.org/fileadmin/documents/Cahiers_2006/CIRPEE06-11.pdf
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Bibliographic Info

Paper provided by CIRPEE in its series Cahiers de recherche with number 0611.

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Date of creation: 2006
Date of revision:
Handle: RePEc:lvl:lacicr:0611

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Keywords: Poverty dynamics; Transient poverty; Chronic poverty; Permanent poverty; China;

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References

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Citations

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Cited by:
  1. Bayudan-Dacuycuy, Connie & Lim, Joseph Anthony, 2013. "Family size, household shocks and chronic and transient poverty in the Philippines," Journal of Asian Economics, Elsevier, vol. 29(C), pages 101-112.
  2. repec:ese:iserwp:2013-23 is not listed on IDEAS
  3. Aaron Nicholas & Ranjan Ray & Kompal Sinha, 2013. "Duration and Multidimensionality in Poverty Measurement," Economics Series 2013_9, Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance.
  4. John Strauss & Nayoung Lee & Geert Ridder, 2010. "Estimation of Poverty Transition Matrices with Noisy Data," Working Papers id:2796, eSocialSciences.
  5. Glauben, Thomas & Herzfeld, Thomas & Rozelle, Scott & Wang, Xiaobing, 2012. "Persistent Poverty in Rural China: Where, Why, and How to Escape?," World Development, Elsevier, vol. 40(4), pages 784-795.
  6. Johannes Gräb & Michael Grimm, 2007. "Robust Multiperiod Poverty Comparisons," Discussion Papers of DIW Berlin 725, DIW Berlin, German Institute for Economic Research.
  7. Giles, John & Wang, Dewen & Zhao, Changbao, 2010. "Can China's rural elderly count on support from adult children ? implications of rural-to-urban migration," Policy Research Working Paper Series 5510, The World Bank.
  8. Katsushi S. Imai & Jing You, 2013. "Poverty Dynamics of Households in Rural China," Discussion Paper Series DP2013-16, Research Institute for Economics & Business Administration, Kobe University, revised Jun 2013.
  9. Echevin, Damien, 2011. "Characterizing poverty and vulnerability in rural Haiti: a multilevel decomposition approach," MPRA Paper 35659, University Library of Munich, Germany.
  10. Katsushi Imai & Jin You, 2012. "Poverty Dynamics of Households in Rural China: Identifying Multiple Pathways for Poverty Transition," The School of Economics Discussion Paper Series 1203, Economics, The University of Manchester.
  11. Jäntti, Markus & Jenkins, Stephen P., 2013. "Income Mobility," IZA Discussion Papers 7730, Institute for the Study of Labor (IZA).
  12. 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.
  13. Hoy, Michael & Zheng, Buhong, 2011. "Measuring lifetime poverty," Journal of Economic Theory, Elsevier, vol. 146(6), pages 2544-2562.
  14. Florent Bresson & Jean-Yves Duclos, 2012. "Intertemporal Poverty Comparisons," Cahiers de recherche 1240, CIRPEE.

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