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Intertemporal Poverty Measurement: Tradeoffs and Policy Options

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  • Natalie Nairi Quinn
  • Catherine Porter

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.

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Bibliographic Info

Paper provided by University of Oxford, Department of Economics in its series Economics Series Working Papers with number CSAE WPS/2008-21.

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Date of creation: 01 Aug 2008
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Handle: RePEc:oxf:wpaper:csae-wps/2008-21

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  1. Webb, Patrick & von Braun, Joachim & Yohannes, Yisehac, 1992. "Famine in Ethiopia: policy implications of coping failure at national and household levels," Research reports 92, International Food Policy Research Institute (IFPRI).
  2. Cesar Calvo & Stefan Dercon, 2007. "Chronic Poverty and All That: The Measurement of Poverty over Time," Economics Series Working Papers WPS/2007-04, University of Oxford, Department of Economics.
  3. Deaton, Angus, 1992. " Household Saving in LDCs: Credit Markets, Insurance and Welfare," Scandinavian Journal of Economics, Wiley Blackwell, vol. 94(2), pages 253-73.
  4. 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.
  5. Ravallion, Martin, 1996. "Issues in Measuring and Modelling Poverty," Economic Journal, Royal Economic Society, vol. 106(438), pages 1328-43, September.
  6. Ann Huff Stevens, 1999. "Climbing out of Poverty, Falling Back in: Measuring the Persistence of Poverty Over Multiple Spells," Journal of Human Resources, University of Wisconsin Press, vol. 34(3), pages 557-588.
  7. Mary Jo Bane & David T. Ellwood, 1986. "Slipping into and out of Poverty: The Dynamics of Spells," Journal of Human Resources, University of Wisconsin Press, vol. 21(1), pages 1-23.
  8. Chaudhuri, Shubham & Ravallion, Martin, 1994. "How well do static indicators identify the chronically poor?," Journal of Public Economics, Elsevier, vol. 53(3), pages 367-394, March.
  9. Sen, Amartya K, 1976. "Poverty: An Ordinal Approach to Measurement," Econometrica, Econometric Society, vol. 44(2), pages 219-31, March.
  10. Mckay, Andrew & Lawson, David, 2003. "Assessing the Extent and Nature of Chronic Poverty in Low Income Countries: Issues and Evidence," World Development, Elsevier, vol. 31(3), pages 425-439, March.
  11. Bob Baulch & John Hoddinott, 2000. "Economic mobility and poverty dynamics in developing countries," Journal of Development Studies, Taylor & Francis Journals, vol. 36(6), pages 1-24.
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Cited by:
  1. Walter Bossert & Satya R. Chakravarty & Conchita D’Ambrosio, 2008. "Poverty and Time," Working Papers 87, ECINEQ, Society for the Study of Economic Inequality.
    • Bossert, Walter & Chakravarty, Satya R. & d’Ambrosio, Conchita, 2010. "Poverty and Time," Working Paper Series wp2010-74, World Institute for Development Economic Research (UNU-WIDER).
    • 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.
  2. Frédéric Gaspart & Anne-Claire Thomas, 2012. "Does poverty trap rural Malagasy households?," Working Papers DT/2012/07, DIAL (Développement, Institutions et Mondialisation).
  3. Indranil Dutta & Laurence Roope & Horst Zank, 2013. "On intertemporal poverty measures: the role of affluence and want," Social Choice and Welfare, Springer, vol. 41(4), pages 741-762, October.
  4. 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, 06.
  5. Gaspart, Frédéric & Thomas, Anne-Claire, 2012. "Does poverty trap rural Malagasy households?," Economics Papers from University Paris Dauphine 123456789/10594, Paris Dauphine University.
  6. Catherine Porter and Natalie Nairi Quinn, 2012. "Normative Choices and Tradeoffs when Measuring Poverty over Time," OPHI Working Papers ophiwp056, Queen Elizabeth House, University of Oxford.
  7. Cesar Calvo & Stefan Dercon, 2013. "Vulnerability to individual and aggregate poverty," Social Choice and Welfare, Springer, vol. 41(4), pages 721-740, October.
  8. Maria Emma Santos, 2012. "Measuring Chronic Poverty," OPHI Working Papers ophiwp052, Queen Elizabeth House, University of Oxford.

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