On Measuring Vulnerability to Poverty
34 Pages Posted: 10 Sep 2010
Date Written: April 1, 2010
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 its properties.
Keywords: Deprivation, Vulnerability, Expected Poverty, Uncertainty
JEL Classification: D63, I32
Suggested Citation: Suggested Citation