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Vulnerability to poverty: An empirical comparison of alternative measures

  • Celidoni, Martina
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    The recent common feeling about a skyrocketing economic risk has drawn increasing attention to its role and consequences on individuals' welfare. In literature one of the concepts that aims to measure it is vulnerability to poverty, that is the probability, today, of being in poverty or to fall into deeper poverty in the future (The World Bank, 2011). This paper compares empirically the several measures of individual vulnerability proposed in the literature, in order to understand which is the best signal of poverty that can be used for policies purposes. To this aim the Receiver Operating Characteristic (ROC) curve, the Pearson and Spearman correlation coefficients are used as precision criteria. The results show that two groups of indexes can be identified, high- and low-performers, and, among the former, that proposed by Dutta et al. (2011) is the most precise.

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    File URL: http://mpra.ub.uni-muenchen.de/33002/1/MPRA_paper_33002.pdf
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    Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 33002.

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    Date of creation: 26 Aug 2011
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    Handle: RePEc:pra:mprapa:33002
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    1. Hoddinott, John & Quisumbing, Agnes, 2003. "Methods for microeconometric risk and vulnerability assessments," Social Protection Discussion Papers 29138, The World Bank.
    2. Gaiha, Raghav & Imai, Katsushi, 2008. "Measuring Vulnerability and Poverty: Estimates for Rural India," Working Paper Series RP2008/40, World Institute for Development Economic Research (UNU-WIDER).
    3. Ligon, Ethan & Laura Schechter, 2002. "Measuring Vulnerability," Royal Economic Society Annual Conference 2002 128, Royal Economic Society.
    4. David Madden, 2011. "Health and income poverty in Ireland, 2003–2006," Journal of Economic Inequality, Springer, vol. 9(1), pages 23-33, March.
    5. Lars Osberg, 1998. "Economic Insecurity," Discussion Papers 0088, University of New South Wales, Social Policy Research Centre.
    6. Sanghamitra Bandyopadhyay & Frank Cowell, 2007. "Modelling Vulnerability in the UK," Economics Series Working Papers 313, University of Oxford, Department of Economics.
    7. Pritchett, Lant & Suryahadi, Asep & Sumarto, Sudarno, 2000. "Quantifying vulnerability to poverty - a proposed measure, applied to Indonesia," Policy Research Working Paper Series 2437, The World Bank.
    8. Md. Shafiul Azam & Katsushi Imai, 2009. "Vulnerability and Poverty in Bangladesh," The School of Economics Discussion Paper Series 0905, Economics, The University of Manchester.
    9. Zhang, Yuan & Wan, Guanghua, 2008. "Can We Predict Vulnerability to Poverty?," Working Paper Series RP2008/82, World Institute for Development Economic Research (UNU-WIDER).
    10. Andrea Brandolini & Silvia Magri & Timothy M. Smeeding, 2010. "Asset-based measurement of poverty," Temi di discussione (Economic working papers) 755, Bank of Italy, Economic Research and International Relations Area.
    11. Raghbendra Jha & Tu Dang & K L Sharma, 2008. "Vulnerability to Poverty in Fiji," Departmental Working Papers 2008-07, The Australian National University, Arndt-Corden Department of Economics.
    12. Osberg, L., 1999. "Economic Insecurity in the Malaysian Context," Working Papers 22, John Deutsch Institute for the Study of Economic Policy.
    13. Xiaobing Wang & Woojin Kang & Katsushi S. Imai, 2010. "Poverty and Vulnerability in Rural China: Effects of Taxation," Working Papers id:2886, eSocialSciences.
    14. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May.
    15. Katsushi Imai & Raghav Gaiha & Woojin Kang, 2011. "Vulnerability and poverty dynamics in Vietnam," Applied Economics, Taylor & Francis Journals, vol. 43(25), pages 3603-3618.
    16. Jalan, Jyotsna & Ravallion, Martin, 1998. "Determinants of transient and chronic poverty : evidence from rural China," Policy Research Working Paper Series 1936, The World Bank.
    17. Christopher Gerry & Carmen Li, 2010. "Consumption smoothing and vulnerability in Russia," Applied Economics, Taylor & Francis Journals, vol. 42(16), pages 1995-2007.
    18. Indranil Dutta & James Foster & Ajit Mishra, 2011. "On measuring vulnerability to poverty," Social Choice and Welfare, Springer, vol. 37(4), pages 743-761, October.
    19. Cesar Calvo & Stefan Dercon, 2005. "Measuring Individual Vulnerability," Economics Series Working Papers 229, University of Oxford, Department of Economics.
    20. 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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