Vulnerability to Downside Risk and Poverty in Vietnam
In this paper we propose a new measure of vulnerability called vulnerability to downside risk. The relevant benchmark for this new measure is the current level of wellbeing of a household as opposed to another benchmark such as the poverty line. We argue that this measure adds complementary information to existing measures such as Calvo and Dercon’s (2007) axiomatic measure of vulnerability to poverty. We apply a measure of both vulnerability to downside risk and to poverty to data from Vietnam. We show that consumption smoothing capacities and the probability to experience an adverse event differ substantially between different wealth groups. Consequently, the relation between initial wealth and vulnerability to downside risk is highly non-linear. While moderately but not extremely poor households are relatively vulnerable to extreme poverty, they are less vulnerable to downside risk than any other group of households.
|Date of creation:||28 Sep 2010|
|Contact details of provider:|| Postal: Platz der Goettinger Sieben 3; D-37073 Goettingen, GERMANY|
Phone: +49 551 39 14066
Fax: + 49 551 39 14059
Web page: http://www.uni-goettingen.de/en/82144.html
When requesting a correction, please mention this item's handle: RePEc:got:gotcrc:044. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dominik Noe)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.