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A Class of Chronic Poverty Measures

  • James E. Foster

    ()

    (Department of Economics, Vanderbilt University)

This paper presents a new family of chronic poverty measures based on the Pa poverty measures of Foster, Greer,and Thorbecke (1984). The chronically poor are identified using two cutoffs: a standard poverty line, which identifies the time periods during which a person is poor; and a duration cutoff, which is the minimum percentage of time a person must be in poverty in order to be chronically poor. The new family of chronic poverty measures is constructed by raising the (per-period) normalized gaps of the chronically poor to a power a > 0 and then aggregating. The resulting indices, which can be viewed as duration adjusted Pa measures, satisfy a battery of properties for chronic poverty indices, including time monotonicity and population decomposability. An illustrative application of the family is provided using data from Argentina.

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File URL: http://www.accessecon.com/pubs/VUECON/vu07-w01.pdf
File Function: First version, 2007
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Paper provided by Vanderbilt University Department of Economics in its series Vanderbilt University Department of Economics Working Papers with number 0701.

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Date of creation: Jan 2007
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Handle: RePEc:van:wpaper:0701
Contact details of provider: Web page: http://www.vanderbilt.edu/econ/wparchive/index.html

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  1. Atkinson, A B, 1987. "On the Measurement of Poverty," Econometrica, Econometric Society, vol. 55(4), pages 749-64, July.
  2. Stevens, Ann Huff, 1994. "The Dynamics of Poverty Spells: Updating Bane and Ellwood," American Economic Review, American Economic Association, vol. 84(2), pages 34-37, May.
  3. Sen, Amartya K, 1976. "Poverty: An Ordinal Approach to Measurement," Econometrica, Econometric Society, vol. 44(2), pages 219-31, March.
  4. Sen, Amartya, 1997. "On Economic Inequality," OUP Catalogue, Oxford University Press, number 9780198292975, March.
  5. Mckay, Andrew & Lawson, David, 2003. "Assessing the Extent and Nature of Chronic Poverty in Low Income Countries: Issues and Evidence," World Development, Elsevier, vol. 31(3), pages 425-439, March.
  6. Kai-yuen Tsui, 2002. "Multidimensional poverty indices," Social Choice and Welfare, Springer, vol. 19(1), pages 69-93.
  7. Joan R. Rodgers & John L. Rodgers, 1993. "Chronic Poverty in the United States," Journal of Human Resources, University of Wisconsin Press, vol. 28(1), pages 25-54.
  8. Kolm, Serge-Christophe, 1977. "Multidimensional Egalitarianisms," The Quarterly Journal of Economics, MIT Press, vol. 91(1), pages 1-13, February.
  9. Chakravarty, Satya R., 1983. "A new index of poverty," Mathematical Social Sciences, Elsevier, vol. 6(3), pages 307-313, December.
  10. Mary Jo Bane & David T. Ellwood, 1986. "Slipping into and out of Poverty: The Dynamics of Spells," Journal of Human Resources, University of Wisconsin Press, vol. 21(1), pages 1-23.
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