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On Measuring Vulnerability to Poverty

Author

Listed:
  • I Dutta

    (University of Manchester)

  • J Foster

    (George Washington University)

  • Ajit Mishra

    (University of Bath)

Abstract
There is a growing interest on dynamic and broader concepts of deprivation such as vulnerability, which takes in to account the destitution of individuals from future shocks. We use the framework of decision making under uncertainty to arrive at a new measure of vulnerability to poverty. We highlight the importance of current standard of living to better capture the notion of vulnerability. In conceptualizing the new class of measures of vulnerability we thus move beyond the standard expected poverty measures that is commonly found in the literature. We also axiomatically characterize the new class of measure and discuss some of it's properties.

Suggested Citation

  • I Dutta & J Foster & Ajit Mishra, 2010. "On Measuring Vulnerability to Poverty," Department of Economics Working Papers 03/10, University of Bath, Department of Economics.
    • Handle: RePEc:eid:wpaper:58136
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    References listed on IDEAS

    as
    1. Cesar Calvo & Stefan Dercon, 2005. "Measuring Individual Vulnerability," Economics Series Working Papers 229, University of Oxford, Department of Economics.
    2. Morduch, Jonathan, 1994. "Poverty and Vulnerability," American Economic Review, American Economic Association, vol. 84(2), pages 221-225, May.
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    6. Gisele Kamanou & Jonathan Morduch, 2002. "Measuring Vulnerability to Poverty," WIDER Working Paper Series DP2002-58, World Institute for Development Economic Research (UNU-WIDER).
    7. Menezes, C & Geiss, C & Tressler, J, 1980. "Increasing Downside Risk," American Economic Review, American Economic Association, vol. 70(5), pages 921-932, December.
    8. Foster, James E, 1998. "Absolute versus Relative Poverty," American Economic Review, American Economic Association, vol. 88(2), pages 335-341, May.
    9. Stefan Dercon & Pramila Krishnan, 2000. "In Sickness and in Health: Risk Sharing within Households in Rural Ethiopia," Journal of Political Economy, University of Chicago Press, vol. 108(4), pages 688-727, August.
    10. Basu, Kaushik & Nolen, Patrick, 2004. "Vulnerability, Unemployment and Poverty: A New Class of Measures, Its Axiomatic Properties and Application," Working Papers 04-07, Cornell University, Center for Analytic Economics.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    JEL classification:

    • D69 - Microeconomics - - Welfare Economics - - - Other
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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