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Poverty DynamicsInterdisciplinary Perspectives$
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Tony Addison, David Hulme, and Ravi Kanbur

Print publication date: 2009

Print ISBN-13: 9780199557547

Published to Oxford Scholarship Online: May 2009

DOI: 10.1093/acprof:oso/9780199557547.001.0001

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Chronic Poverty and All That

Chronic Poverty and All That

The Measurement of Poverty over Time

Chapter:
(p.29) 2 Chronic Poverty and All That
Source:
Poverty Dynamics
Author(s):

César Calvo

Stefan Dercon (Contributor Webpage)

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780199557547.003.0002

This chapter discusses a number of issues related to measuring poverty over time. It highlights some of the key normative decisions that have to be taken, in particular, the role of compensation over time (whether poverty spells can be compensated for by non-poverty spells); the issue of the discount rate (whether each spell should be given an equal weight); and the issue of the role of persistence (whether repeated spells should be given a higher weight). It offers a number of plausible poverty measures, each with different assumptions regarding these key issues, and shows how these insights can be used to construct a forward-looking measure of vulnerability. The chapter applies a number of these measures to data from rural Ethiopia, and shows that while correlations are high, there would still be considerable differences in ranking households by poverty according to different measures, especially those that have different views on the role of compensation.

Keywords:   poverty measurement, poverty assessment, axioms, poverty dynamics, Ethiopia

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