AbstractMany existing measures of vulnerability lack a theoretical basis. In this paper we propose to measure vulnerability rigorously as the welfare of a household which solves an intertemporal optimisation model under risk.In such models, in essence a stochastic version of the Ramsey model, an important part of chronic poverty may be caused by the ex ante response of households to risks. Our simulation results indicate that whether or not a household is to be classified as vulnerable depends strongly on the time horizon considered. We use the model to assess the accuracy of existing regression-based vulnerability measures. We find that these methods can be vastly improved by including asset measures in the regression.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by EconWPA in its series Development and Comp Systems with number 0408015.
Date of creation: 13 Aug 2004
Date of revision:
Note: Type of Document - pdf
Contact details of provider:
Web page: http://22.214.171.124
Vulnerability; household models.;
Find related papers by JEL classification:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-08-16 (All new papers)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Chris Elbers & Jan Willem Gunning & Bill Kinsey, 2007.
"Growth and Risk: Methodology and Micro Evidence,"
World Bank Economic Review,
World Bank Group, vol. 21(1), pages 1-20.
- Chris Elbers & Jan Willem Gunning & Bill Kinsey, 2003. "Growth and Risk: Methodology and Micro Evidence," Tinbergen Institute Discussion Papers 03-068/2, Tinbergen Institute, revised 19 Sep 2006.
- Chris Elbers & Jan Willem Gunning & Bill Kinsey, 2004. "Growth and Risk: Methodology and Micro Evidence," Development and Comp Systems 0408014, EconWPA.
- Thorbecke, Erik, 2004. "Conceptual and Measurement Issues in Poverty Analysis," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
- Emiliano Magrini & Pierluigi Montalbano, 2012. "Trade openness and vulnerability to poverty: Vietnam in the long-run (1992-2008)," Working Paper Series 3512, Department of Economics, University of Sussex.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (EconWPA).
If references are entirely missing, you can add them using this form.