Poverty Measurement Under Income Risk / Armutsmessung bei Einkommensrisiken

Hans-Peter Weikard

Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), 2004, vol. 224, issue 3, 337-350

Abstract: Poverty indices are usually calculated on the basis of (cross section) income data from the past. As past income is fixed and future income is uncertain such measurement does not reflect the ex ante risk of falling into poverty. This paper presents refinements of commonly used poverty measures to account for income risk. It is shown that the standard headcount ratio underestimates poverty in societies with moderate poverty if income is risky. The Foster, Greer and Thorbecke measure always underestimates poverty if income risk is neglected.

Keywords: Poverty measurement; income risk; underestimation of poverty; Armutsmessung; Einkommensrisiko; Unterschätzung von Armut (search for similar items in EconPapers)
Date: 2004
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1515/jbnst-2004-0304 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:jns:jbstat:v:224:y:2004:i:3:p:337-350

DOI: 10.1515/jbnst-2004-0304

Access Statistics for this article

Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik) is currently edited by Peter Winker

More articles in Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik) from De Gruyter
Bibliographic data for series maintained by Peter Golla ().