Arbeitspapier

On the definition and measurement of chronic poverty

As an alternative to the conventional methods for measuring chronic poverty, this paper proposes an interpersonal comparable measure of permanent income as a basis for defining and measuring chronic poverty. This approach accounts for the fact that individuals regularly undertake inter-period income transfers. Moreover, the approach allows for individual-specific interest rates on borrowing and saving as well as for the presence of liquidity constraints. Due to the general nature the proposed method proves useful for evaluating the theoretical basis of the standard methods for measuring chronic poverty.

Language
Englisch

Bibliographic citation
Series: IZA Discussion Papers ; No. 2659

Classification
Wirtschaft
Subject
Armut
Einkommen
Intertemporale Allokation
Lebenszyklus
Messung
Theorie

Event
Geistige Schöpfung
(who)
Aaberge, Rolf
Mogstad, Magne
Event
Veröffentlichung
(who)
Institute for the Study of Labor (IZA)
(where)
Bonn
(when)
2007

Handle
URN
urn:nbn:de:101:1-20080415162
Last update
10.03.2025, 11:45 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Aaberge, Rolf
  • Mogstad, Magne
  • Institute for the Study of Labor (IZA)

Time of origin

  • 2007

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