Poverty Measurement Under Risk Aversion Using Panel Data
This paper shows how to take into account risk aversion when measuring poverty under income variability. An application to British panel data suggests that income and poverty comparisons between the self-employed and other groups of households are sensitive to assumptions on the degree of risk aversion. The results point to the importance of panel data in order to account for risk aversion and income variability in the measurement of poverty.
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| Length: | 24 pages |
| Date of creation: | 2003 |
| Date of revision: | |
| Handle: | RePEc:shr:wpaper:03-06 |
| Contact details of provider: | Postal: Sherbrooke, Québec, J1K 2R1 Phone: (819) 821-7233 Fax: (819) 821-6930 Web page: http://www.gredi.org/home/documents-de-travail Email: More information through EDIRC
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References listed on IDEAS
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- Rees, Hedley & Shah, Anup, 1986. "An Empirical Analysis of Self-employment in the U.K," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 1(1), pages 95-108, January.
- repec:ebl:ecbull:v:9:y:2003:i:1:p:1-10 is not listed on IDEAS
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- Parker, Simon C, 1999. "The Inequality of Employment and Self-Employment Incomes: A Decomposition Analysis for the U.K," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 45(2), pages 263-74, June.
- Hildreth, Clifford & Knowles, Glenn J., 1982. "Some Estimates of Farmers' Utility Functions," Technical Bulletins 54545, University of Minnesota, Agricultural Experiment Station.
- Simon C. Parker, 2003. "The distribution of wealth of older self-employed Britons," Fiscal Studies, Institute for Fiscal Studies, vol. 24(1), pages 23-43, March.
- Stephen P. Jenkins, 2000. "Modelling household income dynamics," Journal of Population Economics, Springer;European Society for Population Economics, vol. 13(4), pages 529-567.
- Paul Makdissi & Quentin Wodon, 2003. "Risk-adjusted measures of wage inequality and safety nets," Economics Bulletin, AccessEcon, vol. 9(1), pages 1-10.
- Friend, Irwin & Blume, Marshall E, 1975. "The Demand for Risky Assets," American Economic Review, American Economic Association, vol. 65(5), pages 900-922, December.
- Jovanovic, Boyan, 1982. "Selection and the Evolution of Industry," Econometrica, Econometric Society, vol. 50(3), pages 649-70, May.
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