Households' Vulnerability to Covariate and Idiosyncratic Shocks

Konferenzbeitrag

Households in developing countries are frequently hit by severe idiosyncratic and covariate shocks resulting in high consumption volatility. A household's currently observed poverty status might therefore not be a good indicator of the household's general poverty risk, or in other words its vulnerability to poverty. Although several measurements to analyze vulnerability to poverty have recently been proposed, empirical studies are still rare as the data requirements for these measurements are not met by the surveys that are available for most developing countries. In this paper, we propose a simple method to empirically assess the impact of idiosyncratic and covariate shocks on households' vulnerability, which can be used in a wide context as it relies on commonly available living standard measurement surveys. We apply our approach to data from Madagascar and show, that whereas covariate shocks have a substantial impact on rural households' vulnerability, urban households' vulnerability is largely determined by idiosyncratic shocks.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Proceedings of the German Development Economics Conference, Berlin 2006 ; No. 10

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Measurement and Analysis of Poverty ; Welfare Economics: General
• Thema: Vulnerability to poverty ; idiosyncratic and covariate shocks ; multilevel modelling

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Harttgen, Kenneth ; Günther, Isabel
• Ereignis: Veröffentlichung
• (wer): Verein für Socialpolitik, Ausschuss für Entwicklungsländer
• (wo): Hannover
• (wann): 2006

Weitere Informationen

• Handle: http://hdl.handle.net/10419/19838
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ