Measuring Vulnerability and Poverty: Estimates for Rural India

Raghav Gaiha and Katsushi Imai

No RP2008-40, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: This paper measures the vulnerability of households in rural India, based upon the ICRISAT panel survey. We employ both ex ante and ex post measures of vulnerability. The latter are decomposed into aggregate and idiosyncratic risks and poverty components. Our decomposition shows that idiosyncratic risks account for the largest share, followed by poverty and aggregate risks. Despite some degree of risk-sharing, the landless or small farmers are vulnerable to idiosyncratic risks, forcing them to reduce consumption.

Keywords: Government policy (Poor); Poverty measurement; Risk; Risk management (search for similar items in EconPapers)
Date: 2008
New Economics Papers: this item is included in nep-cwa and nep-dev
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Citations: View citations in EconPapers (33)

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