Celidoni, Martina (2011): Vulnerability to poverty: An empirical comparison of alternative measures.
Download (547kB) | Preview
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.
|Item Type:||MPRA Paper|
|Original Title:||Vulnerability to poverty: An empirical comparison of alternative measures|
|Keywords:||Poverty, Risk, Vulnerability, Receiver Operating Characteristic curve(ROC)|
|Subjects:||D - Microeconomics > D6 - Welfare Economics > D63 - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
I - Health, Education, and Welfare > I3 - Welfare and Poverty > I32 - Measurement and Analysis of Poverty
|Depositing User:||Martina Celidoni|
|Date Deposited:||26. Aug 2011 16:46|
|Last Modified:||11. Feb 2013 20:15|
Amemiya, T. (1977) The maximum likelihood estimator and the non-linear three stage least squares estimator in the general nonlinear simultaneous equation model, Econometrica, 45, 955-968.
Azam, M. and Imai, K. (2009) Vulnerability and Poverty in Bangladesh, the University of Manchester: The School of Economics Discussion Paper Series 0905.
Bandyopadhyay, S. and Cowell, F. (2007) Modelling Vulnerability in the UK, LSE STICERD Research Paper 89.
Baulch, B. and Hoddinott, J. (2000) Economic mobility and poverty dynamics in developing countries, Journal of Development Studies, 36, 1-24.
Biagi, F., Giraldo, A. and Rettore, E. (2009) Gli effetti dell'attrito sulla stima della disuguaglianza in Italia, in Dimensioni della disuguaglianza in Italia: povertà, salute, abitazione (Eds.) B. A. S. C. and A. Schizzerotto, Il Mulino, Bologna.
Brandolini, A., Magri, S. and Smeeding, T. M. (2010) Asset-based measurement of poverty, bank of Italy, Economic Research Department: Temi di discussione (Economic working papers) 755.
Brewer, M., Goodman, A., Shaw, J. and Sibieta, L. (2006) Poverty and Inequality in Britain: 2006, Institute for Fiscal Studies: IFS Commentary 101.
Calvo, C. and Dercon, S. (2005) Measuring Individual Vulnerability, university of Oxford, Department of Economics: Economics Series Working Papers 229.
Chaudhuri, S. (2003) Assessing household vulnerability to poverty: concepts, empirical methods and illustrative examples, Columbia University. Mimeo.
Chaudhuri, S., Jalan, J. and Suryahadi, A. (2002) Assessing household vulnerability to poverty from cross-sectional data: a methodology and estimates from Indonesia, Columbia University, Department of Economics: Discussion Paper 0102-52.
DeLong, E., DeLong, D. and Clarke-Pearson, D. (1988) Comparing the Areas Under Two or More Correlated Receiver Operating Characteristic Curves: A Nonparametric Approach, Biometrics, 44, 837-845.
Dercon, S. (2006) Vulnerability: a micro perspective, QEH Working Papers QEHWPS149.
Dutta, I., Foster, J. and Mishra, A. (2011) On measuring vulnerability to poverty, Social Choice and Welfare, forthcoming.
Foster, J., Greer, J. and Thorbecke, E. (1984) A class of decomposable poverty measures, Econometrica, 52, 761-766.
Gaiha, R. and Imai, K. (2008) Measuring Vulnerability and Poverty: Estimates for Rural India, World Institute for Development Economic Research (UNU-WIDER): Working Papers RP2008/40.
Gaiha, R., Imai, K. and Kang, W. (2011) Vulnerability and poverty dynamics in Vietnam, Applied Economics, 43, 3603-3618.
Gerry, C. and Li, C. (2010) Consumption smoothing and vulnerability in Russia, Applied Economics, 42, 1995-2007.
Hoddinott, J. and Quisumbing, A. R. (2003) Methods for microeconometric risk and vulnerability assessments, The World Bank: Social Protection Discussion Paper Series 0324.
Imai, K., Wang, X. and Kang, W. (2009) Poverty and Vulnerability in Rural China: Effects of Taxation, The University of Manchester, The School of Economics: Discussion Paper Series 0913.
Jalan, J. and Ravaillon, M. (1998) Determinants of Transient and Chronic Poverty: Evidence from Rural China, World Bank Policy Research Working Paper No. 1936.
Jamal, H. (2009) Assessing Vulnerability to Poverty: Evidence from Pakistan, Social Policy and Development Centre (SPDC): Research Report N.80.
Jha, R., Dang, T. and Sharma, K. (2009) Vulnerability to poverty in Fiji, International Journal of Applied Econometrics and Quantitative Studies, 6, 51-68.
Kamanou, G. and Morduch, J. (2002) Measuring Vulnerability to Poverty, World Institute for Development Economic Research: Working Papers UNU-WIDER Research Paper, 2002/58.
Ligon, E. and Schechter, L. (2003) Measuring vulnerability, Economic Journal, 113, C95-C102.
Madden, D. (2008) Health and Income Poverty in Ireland, 2003-2006, University College Dublin, School Of Economics: Working Paper 200815.
Osberg, L. (1998) Economic Insecurity, University of New South Wales, Social Policy Research Centre: SPRC Discussion Paper 88.
Osberg, L. (2010) Measuring Economic Insecurity and Vulnerability as part of Economic Well-being: Concepts and Context, in IARIW 31st General Conference, St. Gallen, Switzerland.
Pritchett, L., Suryahadi, A. and Sumarto, S. (2000) Quantifying Vulnerability to Poverty: A proposed Measure Applied to Indonesia, The World Bank: Working Paper WPS 2437.
Skouas, E. and Quisumbing, A. R. (2003) Consumption Insurance and Vulnerability to Poverty: A Synthesis of the Evidence from Bangladesh, Ethiopia, Mali, Mexico and Russia, International Food Policy Research Institute: FCND Discussion paper 155.
The World Bank (2011) Measuring Vulnerability, available at: http://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTPOVERTY/EXTPA/0,,contentMDK:20238993~menuPK:492141~pagePK:148956~piPK:216618~theSitePK:430367,00.html[2011,February10].
Zhang, Y. and Guanghua, W. (2008) Can We Predict Vulnerability to Poverty?, WIDER Research Paper 2008/82.