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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: https://ora.ox.ac.uk/objects/uuid:19a7c0d1-fc6d-4c5b-8c48-02077f029432
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    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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