Methods for Microeconometric Risk and Vulnerability Assessments
43 Pages Posted: 11 Oct 2008
Date Written: October 8, 2008
Abstract
This paper summarizes the currently available quantitative tools that measure vulnerability. It reviews data options currently available to researchers and how these can be supplemented with other sources in order to conduct risk and vulnerability assessments. While one could use price, exchange rate, and balance of payments data to examine macroeconomic shocks, and rainfall data to assess the severity of droughts and floods, we are ultimately interested in their impacts on households - thus the emphasis on household data. It begins with a conceptual framework that links risk, risk management, and vulnerability. Building on this discussion, it describes techniques for measuring vulnerability within a population before discussing the data issues associated with their implementation. Building on this, it considers four questions: (1) Who is vulnerable? (2) What are the sources of vulnerability? (3) How do households cope with risk and vulnerability? and (4) What is the gap between risks and risk management mechanisms?
Keywords: risk, vulnerability, shocks
JEL Classification: O12
Suggested Citation: Suggested Citation
Do you have a job opening that you would like to promote on SSRN?
Recommended Papers
-
Quantifying Vulnerability to Poverty: A Proposed Measure, Applied to Indonesia
By Asep Suryahadi, Sudarno Sumarto, ...
-
Toward an Understanding of Household Vulnerability in Rural Kenya
-
Social Safety Nets and Productivity Enhancing Investments in Agriculture
-
Chronic Poverty and All that: The Measurement of Poverty Over Time
By Cesar Calvo and Stefan Dercon
-
Evaluating Different Approaches to Estimating Vulnerability
By Ethan A. Ligon and Laura Schechter
-
Vulnerability in a Stochastic Dynamic Model
By Chris Elbers and Jan Willem Gunning