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A note on the measurement of poverty persistence

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  • Villar, Antonio

Abstract

This paper introduces a poverty index that incorporates poverty persistence as an integral part of poverty measurement within a multiperiod framework. Using familiar tools (logarithmic utilities and a utilitarian social welfare function) we obtain a mathematically straightforward poverty index, which can be interpreted as an estimate of the social cost of poverty. This index can be neatly decomposed into incidence, intensity, and inequality, and is additively decomposable by population subgroups. It consists of the log of the geometric mean of individual intertemporal utility losses.

Suggested Citation

  • Villar, Antonio, 2024. "A note on the measurement of poverty persistence," Economics Letters, Elsevier, vol. 236(C).
    • Handle: RePEc:eee:ecolet:v:236:y:2024:i:c:s0165176524000545
    DOI: 10.1016/j.econlet.2024.111571
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    More about this item

    Keywords

    Poverty persistence; Welfare loss; Logarithmic utility; Utilitarian welfare function; Decomposability;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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