Economists have long recognized that a household's well-being depends not just on its average income or expenditure, but also on the risks it faces. Hence vulnerability is a more satisfactory measure of (inadequate) welfare than poverty. We measure vulnerability as expected poverty and establish the importance of its determinants, for Timor Leste' based on the 2001 Living Standard Measurement Survey. The incidence of inadequate food consumption and vulnerability to food inadequacy are more severe than overall poverty and vulnerability to poverty. Poverty and vulnerability in Timor-Leste' is largely a rural phenomenon. Policy options to reduce vulnerability are also discussed.
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Paper provided by Australian National University, Economics RSPAS in its series Departmental Working Papers with number
2008-11.
Find related papers by JEL classification: C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data I32 - Health, Education, and Welfare - - Welfare and Poverty - - - Measurement and Analysis of Poverty
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