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A Class of Chronic Poverty Measures

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  • James E. Foster

    ()
    (Department of Economics, Vanderbilt University)

Abstract

This paper presents a new family of chronic poverty measures based on the Pa poverty measures of Foster, Greer,and Thorbecke (1984). The chronically poor are identified using two cutoffs: a standard poverty line, which identifies the time periods during which a person is poor; and a duration cutoff, which is the minimum percentage of time a person must be in poverty in order to be chronically poor. The new family of chronic poverty measures is constructed by raising the (per-period) normalized gaps of the chronically poor to a power a > 0 and then aggregating. The resulting indices, which can be viewed as duration adjusted Pa measures, satisfy a battery of properties for chronic poverty indices, including time monotonicity and population decomposability. An illustrative application of the family is provided using data from Argentina.

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Bibliographic Info

Paper provided by Vanderbilt University Department of Economics in its series Vanderbilt University Department of Economics Working Papers with number 0701.

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Date of creation: Jan 2007
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Handle: RePEc:van:wpaper:0701

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Web page: http://www.vanderbilt.edu/econ/wparchive/index.html

Related research

Keywords: Chronic Poverty; Distribution; Measurement; Axioms;

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References

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  1. Stevens, Ann Huff, 1994. "The Dynamics of Poverty Spells: Updating Bane and Ellwood," American Economic Review, American Economic Association, American Economic Association, vol. 84(2), pages 34-37, May.
  2. Kai-yuen Tsui, 2002. "Multidimensional poverty indices," Social Choice and Welfare, Springer, Springer, vol. 19(1), pages 69-93.
  3. Sen, Amartya, 1997. "On Economic Inequality," OUP Catalogue, Oxford University Press, Oxford University Press, number 9780198292975, October.
  4. Mckay, Andrew & Lawson, David, 2003. "Assessing the Extent and Nature of Chronic Poverty in Low Income Countries: Issues and Evidence," World Development, Elsevier, Elsevier, vol. 31(3), pages 425-439, March.
  5. repec:ese:iserwp:12 is not listed on IDEAS
  6. Joan R. Rodgers & John L. Rodgers, 1993. "Chronic Poverty in the United States," Journal of Human Resources, University of Wisconsin Press, vol. 28(1), pages 25-54.
  7. Ravi Kanbur & Diganta Mukherjee, 2007. "Premature Mortality And Poverty Measurement," Bulletin of Economic Research, Wiley Blackwell, Wiley Blackwell, vol. 59(4), pages 339-359, October.
  8. Kolm, Serge-Christophe, 1977. "Multidimensional Egalitarianisms," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 91(1), pages 1-13, February.
  9. Chakravarty, Satya R., 1983. "A new index of poverty," Mathematical Social Sciences, Elsevier, Elsevier, vol. 6(3), pages 307-313, December.
  10. Atkinson, A B, 1987. "On the Measurement of Poverty," Econometrica, Econometric Society, Econometric Society, vol. 55(4), pages 749-64, July.
  11. Sen, Amartya K, 1976. "Poverty: An Ordinal Approach to Measurement," Econometrica, Econometric Society, Econometric Society, vol. 44(2), pages 219-31, March.
  12. 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.
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Cited by:
  1. Michael Hoy & Brennan Thompson & Buhong Zheng, 2012. "Empirical issues in lifetime poverty measurement," Journal of Economic Inequality, Springer, Springer, vol. 10(2), pages 163-189, June.
  2. Tsehay, Abrham Seyoum & Bauer, Siegfried, 2012. "Poverty Dynamics and Vulnerability: Empirical Evidence from Smallholders in Northern Highlands of Ethiopia," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington, Agricultural and Applied Economics Association 126780, Agricultural and Applied Economics Association.
  3. James Foster & Joel Greer & Erik Thorbecke, 2010. "The Foster–Greer–Thorbecke (FGT) poverty measures: 25 years later," Journal of Economic Inequality, Springer, Springer, vol. 8(4), pages 491-524, December.
  4. Stefan Dercon & John Hoddinott & Tassew Woldehanna, 2011. "Growth and chronic poverty: Evidence from rural communities in Ethiopia," CSAE Working Paper Series 2011-18, Centre for the Study of African Economies, University of Oxford.
  5. Alkire, Sabina & Foster, James, 2011. "Counting and multidimensional poverty measurement," Journal of Public Economics, Elsevier, Elsevier, vol. 95(7), pages 476-487.
  6. Wan, Guanghua & Zhang, Yuan, 2013. "Chronic and transient poverty in rural China," Economics Letters, Elsevier, Elsevier, vol. 119(3), pages 284-286.
  7. Michael Hoy & Buhong Zheng, 2008. "Measuring Lifetime Poverty," Working Papers, University of Guelph, Department of Economics and Finance 0814, University of Guelph, Department of Economics and Finance.
  8. Maria Emma Santos, 2012. "Measuring Chronic Poverty," OPHI Working Papers ophiwp052, Queen Elizabeth House, University of Oxford.
  9. Walter Bossert & Satya R. Chakravarty & Conchita D’Ambrosio, 2008. "Poverty and Time," Working Papers 87, ECINEQ, Society for the Study of Economic Inequality.
  10. Sabina Alkire, 2011. "Multidimensional Poverty and its Discontents," OPHI Working Papers ophiwp046, Queen Elizabeth House, University of Oxford.
  11. Núñez Velázquez, José Javier, 2009. "Estado actual y nuevas aproximaciones a la medición de la pobreza/Current Status and New Approaches to the Measurement of Poverty," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 27, pages 325-346, Agosto.
  12. 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.
  13. Pérez-Mayo, Jesús, 2009. "Un análisis dinámico de la privación en España /A Dynamic Analysis of Deprivation for Spain," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 27, pages 501-522, Agosto.
  14. Kanbur, Ravi, 2009. "Poverty and Distribution: Twenty Years Ago and Now," Working Papers, Cornell University, Department of Applied Economics and Management 48918, Cornell University, Department of Applied Economics and Management.
  15. Tsehay, Abrham Seyoum & Bauer, Siegfried, 2012. "Poverty Dynamics and Vulnerability: Empirical Evidence from Smallholders in Northern Highlands of Ethiopia," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil, International Association of Agricultural Economists 126873, International Association of Agricultural Economists.

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