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Vulnerability to Poverty

Author

Listed:
  • Cesar Calvo
  • Stefan Dercon

Abstract

Standard poverty analysis makes statements about deprivation after the veil of uncertainty has been lifted. Nonetheless, the term 'vulnerability' has been used as a tool to remark that uncertainty and risk do matter. In this paper, we define 'vulnerability to poverty' as the magnitude of the threat of poverty, measured ex-ante, before uncertainty is resolved. We describe the desirable properties of a vulnerability measure as a set of axioms, and present a family of measures satisfying our desiderata at the individual level. We also propose a family of measures of aggregate vulnerability, a concept which has remained largely unexplored thus far.

Suggested Citation

  • Cesar Calvo & Stefan Dercon, 2007. "Vulnerability to Poverty," CSAE Working Paper Series 2007-03, Centre for the Study of African Economies, University of Oxford.
  • Handle: RePEc:csa:wpaper:2007-03
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    File URL: http://www.csae.ox.ac.uk/materials/papers/2007-03text.pdf
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    References listed on IDEAS

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    1. 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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    Citations

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    Cited by:

    1. Iacovone, Leonardo & Rauch, Ferdinand & Winters, L. Alan, 2013. "Trade as an engine of creative destruction: Mexican experience with Chinese competition," Journal of International Economics, Elsevier, vol. 89(2), pages 379-392.
    2. de la Fuente, Alejandro & Ortiz-Juarez, Eduardo & Rodriguez-Castelan, Carlos, 2015. "Living on the edge : vulnerability to poverty and public transfers in Mexico," Policy Research Working Paper Series 7165, The World Bank.
    3. Cesar Calvo & Stefan Dercon, 2013. "Vulnerability to individual and aggregate poverty," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 41(4), pages 721-740, October.
    4. Völker, Marc & Tongruksawattana, Songporne & Hardeweg, Bernd & Waibel, Hermann, 2011. "Climate risk perception and ex-ante mitigation strategies of rural households in Thailand and Vietnam," Proceedings of the German Development Economics Conference, Berlin 2011 79, Verein für Socialpolitik, Research Committee Development Economics.
    5. Mauricio de Moura & Marcos Ribeiro & Caio Piza, 2014. "Are there any distributive effects of land title on labor supply? evidence from Brazil," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-18, December.
    6. Luis López-Calva & Eduardo Ortiz-Juarez, 2014. "A vulnerability approach to the definition of the middle class," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, pages 23-47.
    7. Montalbano, Pierluigi, 2011. "Trade Openness and Developing Countries' Vulnerability: Concepts, Misconceptions, and Directions for Research," World Development, Elsevier, vol. 39(9), pages 1489-1502, September.
    8. Villa, Juan M. & Nino-Zarazua, Miguel, 2014. "Poverty dynamics and programme graduation from social protection: A transitional model for Mexico's Oportunidades programme," WIDER Working Paper Series 109, World Institute for Development Economic Research (UNU-WIDER).
    9. Gallardo, Mauricio, 2013. "Using the downside mean-semideviation for measuring vulnerability to poverty," Economics Letters, Elsevier, vol. 120(3), pages 416-418.
    10. 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.
    11. Narayan C Das & Farzana A Misha, 2010. "Addressing Extreme Poverty in a Sustainable Manner: Evidence from CFPR programme," Working Papers id:2723, eSocialSciences.
    12. World Bank, 2010. "Ethiopia : Re-Igniting Poverty Reduction in Urban Ethiopia through Inclusive Growth," World Bank Other Operational Studies 2921, The World Bank.
    13. Emiliano Magrini & Pierluigi Montalbano & L. Alan Winters, 2017. "Vulnerability from trade in Vietnam," Working Papers 12/17, Sapienza University of Rome, DISS.
    14. Marco Letta & Pierluigi Montalbano & Richard S.J. Tol, 2017. "Temperature shocks, growth and poverty thresholds: evidence from rural Tanzania," Working Papers 13/17, Sapienza University of Rome, DISS.

    More about this item

    Keywords

    vulnerability; poverty;

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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