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Chronic and Transient Poverty: Measurement and Estimation, with Evidence from China

  • Jean-Yves Duclos
  • Abdelkrim Araar
  • John Giles

The paper contributes to the measurement of poverty and vulnerability in three ways. First, we propose a new approach to separating poverty into chronic and transient components. Second, we provide corrections for the statistical biases introduced when using a small number of periods to estimate the importance of vulnerability and transient poverty. Third, we apply these tools to the measurement of chronic and transient poverty in China using a rich panel data set that extends over approximately 17 years. We find that alternative measurement techniques yield significantly different estimates of the relative importance of chronic and transient poverty, and that precision of estimates is enhanced with simple statistical corrections.

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File URL: http://www.cirpee.org/fileadmin/documents/Cahiers_2006/CIRPEE06-11.pdf
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Paper provided by CIRPEE in its series Cahiers de recherche with number 0611.

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Date of creation: 2006
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Handle: RePEc:lvl:lacicr:0611
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  1. Blakorby, Charles & Donaldson, David, 1980. "Ethical Indices for the Measurement of Poverty," Econometrica, Econometric Society, vol. 48(4), pages 1053-60, May.
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  20. repec:ese:iserwp:2003-17 is not listed on IDEAS
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  22. 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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  27. Atkinson, Tony & Cantillon, Bea & Marlier, Eric & Nolan, Brian, 2002. "Social Indicators: The EU and Social Inclusion," OUP Catalogue, Oxford University Press, number 9780199253494, March.
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