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Measuring Chronic Poverty

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  • Maria Emma Santos

Abstract

A new class of chronic poverty measures is constructed that builds upon Jalan and Ravallion (1998) but does not require resources in different periods to be perfect substitutes when identifying the chronically poor. We use a general mean to combine the resources of a person into a permanent income standard that is then compared to a poverty line to determine when a person is chronically poor. The parameter of the general mean allows for varying degrees of substitutability over time. The decomposable Clark, Hemming and Ulph (1981) poverty measure is applied to the distribution of permanent income standards to measure overall chronic poverty. Each measure has a convenient expression in terms of a censored matrix and satisfies a host of properties including decomposability. We provide an empirical application of the new measures using panel data from urban areas in Argentina.

Suggested Citation

  • Maria Emma Santos, 2012. "Measuring Chronic Poverty," OPHI Working Papers ophiwp052, Queen Elizabeth House, University of Oxford.
  • Handle: RePEc:qeh:ophiwp:ophiwp052
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    File URL: http://www3.qeh.ox.ac.uk/pdf/ophiwp/OPHIWP052.pdf
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    References listed on IDEAS

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      • BOSSERT, Walter & CHAKRAVARTY, Satya R. & D’AMBROSIO, Conchita, 2008. "Poverty and Time," Cahiers de recherche 2008-05, Universite de Montreal, Departement de sciences economiques.
      • Bossert, Walter & Chakravarty, Satya R. & d’Ambrosio, Conchita, 2010. "Poverty and Time," WIDER Working Paper Series 074, World Institute for Development Economic Research (UNU-WIDER).
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    Cited by:

    1. Amanda Lenhardt & Andrew Shepherd, 2013. "What has happened to the poorest 50%?," Brooks World Poverty Institute Working Paper Series 18413, BWPI, The University of Manchester.
    2. Javier Alejo & Santiago Garganta, 2014. "Pobreza Crónica y Transitoria: Evidencia para Argentina 1997-2012," CEDLAS, Working Papers 0175, CEDLAS, Universidad Nacional de La Plata.
    3. Mai, Tung & Mahadevan, Renuka, 2016. "A research note on the poverty dynamics and cost of poverty inequality: Case study of Indonesia," Economic Analysis and Policy, Elsevier, vol. 49(C), pages 100-107.

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