Echevin, Damien (2011): Vulnerability to asset-poverty in Sub-Saharan Africa.
Download (204kB) | Preview
This paper presents a methodology to measure vulnerability to asset-poverty. Using repeated cross-section data, age cohort decomposition techniques focusing on second-order moments can be used to identify and estimate the variance of shocks on assets and, therefore, the probability of being poor in the future. Estimates from the Ghana Living Standard Surveys show that expected asset-poverty is a reliable proxy for expected consumption-poverty. Applying the methodology to nine Demographic Health Surveys countries, urban areas are found to unambiguously dominate rural areas over the unidimensional distribution of expected future asset-wealth, as they also generally do over the bi-dimensional distribution of present asset-wealth and expected future asset-wealth.
|Item Type:||MPRA Paper|
|Original Title:||Vulnerability to asset-poverty in Sub-Saharan Africa|
|Keywords:||vulnerability; poverty; wealth; pseudo panel; stochastic dominance; Africa|
|Subjects:||D - Microeconomics > D3 - Distribution > D31 - Personal Income, Wealth, and Their Distributions
D - Microeconomics > D1 - Household Behavior and Family Economics > D12 - Consumer Economics: Empirical Analysis
O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O15 - Human Resources ; Human Development ; Income Distribution ; Migration
O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O12 - Microeconomic Analyses of Economic Development
I - Health, Education, and Welfare > I3 - Welfare, Well-Being, and Poverty > I32 - Measurement and Analysis of Poverty
|Depositing User:||Damien Échevin|
|Date Deposited:||31. Dec 2011 22:05|
|Last Modified:||13. Feb 2013 06:52|
Alderman, H., Hoddinott, J., and B. Kinsey (2002), “Long term consequences of early childhood malnutrition,” mimeo, FCND, International Food Policy Research Institute, Washington D.C.
Antman, F., and D. J. McKenzie (2007), “Poverty traps and nonlinear income dynamics with measurement error and individual heterogeneity,” Journal of Development Studies, 43(6), 1057-1083.
Asselin, L-M. (2009), Analysis of multidimensional poverty: Theory and case studies. Springer.
Behrman, J., Alderman, H., and J. Hoddinott (2004), “Hunger and malnutrition,” in Global Crises, Global Solutions, B. Lomborg (ed.). Cambridge (UK): Cambridge University Press.
Benzécri, J.P. (1973), L’analyse des données 2 : L’analyse des correspondances. Paris: Dunod.
Booysen F., van der Berg, S., von Maltitz, M., and G. du Rand (2008), “Using an asset index to assess trends in poverty in seven sub-Saharan African countries,” World Development, 36(6), 1113-1130.
Bourguignon, F., and C. Goh (2004), “Trade and labor vulnerability in Indonesia, Republic of Korea, and Thailand,” in Kharas, H., and K. Krumm (eds), East Asia integrates: a trade policy agenda for shared growth. World Bank and Oxford University Press, Washington DC.
Calvo, C. (2008), “Vulnerability to multidimensional poverty: Peru, 1998–2002”, World Development, 36(6), 1011–1020.
Calvo, C., and S. Dercon (2005), “Measuring individual vulnerability,” Oxford Economics Discussion Paper, 229.
Carroll, C. (1992), “The buffer-stock theory of saving: Some macroeconomic evidence,” Brookings Papers on Economic Activity, 23(2), 61-156.
Carter, M. R., and C. B. Barrett (2006), “The economics of poverty traps and persistent poverty: An asset-based approach,” Journal of Development Studies, 42(2), 178–199.
Chaudhuri, S. (2003), “Assessing vulnerability to poverty: concepts, empirical methods and illustrative examples,” mimeo, Department of economics, Columbia University
Chaudhuri S., Jalan, J., and A. Suryahadi (2002), “Assessing household vulnerability to poverty from cross-sectional data: a methodology and estimates from Indonesia,” Discussion Paper 0102-02, Department of Economics, Columbia University.
Christiaensen, L., and K. Subbarao (2005), “Towards an understanding of vulnerability in rural Kenya,” Journal of African Economies, 14(4), 520-558.
Coulombe, H., and Q. Wodon (2007), “Poverty, livelihoods, and access to basic services in Ghana,” The World Bank, Washington DC.
Deaton, A. (1985), “Panel data from time series of cross-sections,” Journal of Econometrics, 30(1-2), 109–26.
Deaton, A. (1991), “Saving and liquidity constraints,” Econometrica, 59(5), 1221– 1248.
Deaton, A., and C. Paxson (1994), “Intertemporal choice and inequality,” Journal of Political Economy, 102(3), 437-467.
De Ferranti, D., Perry, G. E., and L. Serven (2000), Securing our Future in a Global Economy. World Bank, Washington DC.
Dercon, S. (1998) Wealth, risk and activity choice: cattle in Western Tanzania. Journal of Development Economics, 55, 1-42.
Dercon, S. and Krishnan, P. (2003) Risk sharing and public transfers. Economic Journal, 113(486), C86-C94.
Duclos, J.-Y.. Sahn, D. E. and S. D. Younger (2011), “Partial multidimensional inequality orderings,” Journal of Public Economics, 95(3-4), 225-238.
Fafchamps, M., Udry, C., and K. Czukas (1998), “Drought and saving in West Africa: Are livestock a buffer stock?” Journal of Development Economics, 55(2), 273-305.
Filmer, D., and L. H. Pritchett (2001), “Estimating wealth effects without expenditure data—or tears: An application to educational enrollments in states of India,” Demography, 38(1), 115-132.
Glewwe, P., and G. Hall (1998), “Are some groups more vulnerable to macroeconomic shocks than others? Hypothesis tests based on panel data from Peru,” Journal of Development Economics, 56(1), 181-206.
Hoddinott, J. (2006), “Shocks and their consequences across and within households in rural Zimbabwe,” Journal of Development Studies, 42(2), 301-321.
Hoddinott, J., and A. Quisumbing (2003), “Methods for microeconometric risk and vulnerability assessment,” Social Protection Discussion Paper Series 0324.
Kazianga, H., and C. Udry (2006), “Consumption smoothing? Livestock, insurance and drought in rural Burkina Faso,” Journal of Development Economics, 79(2), 413-446.
Ligon, E., and L. Schechter (2003), “Measuring vulnerability,” Economic Journal, 113(486), 95-102.
McPeak, J. (2004), “Contrasting income shocks with asset shocks: livestock sales in northern Kenya,” Oxford Economic Papers, 56(2), 263-284.
Morduch, J. (1994), “Poverty and vulnerability”, American Economic Review, Papers and Proceedings, 84(2), 221-225.
Morduch, J. (1995), “Income smoothing and consumption smoothing”, Journal of Economic Perspectives, 9(3), 103-114.
Morduch, J., and G. Kamanou (2004), “Measuring vulnerability to poverty,” in Insurance Against Poverty, S. Dercon (ed.). Oxford University Press.
Moser, C. (1998), “The asset vulnerability framework: Reassessing urban poverty reduction strategies,” World Development, 26(1), 1–19.
Pritchett, L., Suryahadi, A., and S. Sumarto (2000), “Quantifying vulnerability to poverty: A proposed measure, applied to Indonesia,” World Bank Social Monitoring and Early Response Unit.
Ravallion, M., Chen, S., and P. Sangraula (2007), “New evidence on the urbanization of global poverty,” Population and Development Review, 33(4), 667-701.
Rosenzweig, M., and H. Wolpin (1993), “Credit market constraints, consumption smoothing, and the accumulation of durable production assets in low-income countries: investment in bullocks in India,” Journal of Political Economy, 101(2), 223-244.
Sahn, D. E., and D. C. Stifel (2000), “Poverty comparisons over time and across countries in Africa,” World Development, 28(12), 2123–2155.
Sahn, D. E., and D. C. Stifel (2003), “Urban–rural inequality in living standards in Africa,” Journal of African Economies, 12(4), 564–597.
Verbeek, M., and T. Nijman (1992), “Can cohort data be treated as genuine panel data?,” Empirical Economics, 17(1), 9–23.
Verbeek, M. (2008), “Pseudo-panels and repeated cross-sections,” Advanced Studies in Theoretical and Applied Econometrics, 46(2), 369-383.
World Bank (2000), World Development Report 2000/2001: Attacking poverty. New York: The World Bank and Oxford University Press.
World Bank (2009), World Development Report 2010: Climate change. The World Bank, Washington DC.
Zimmerman, F. J., and M. R. Carter (2003), “Asset smoothing, consumption smoothing and the reproduction of inequality under risk and subsistence constraints,” Journal of Development Economics, 71(2), 233-260.