Measuring economic insecurity: a simulation approach

Matteo Richiardi and Zhechun He

No CEMPA2/20, Centre for Microsimulation and Policy Analysis Working Paper Series from Centre for Microsimulation and Policy Analysis at the Institute for Social and Economic Research

Abstract: We suggest a new individual-based measure of economic insecurity where expectations about the future evolution of individual life courses are derived from a dynamic simulation model. This allows to take into account risks over many dimensions including work, family and health. On the earning side, we summarise the uncertainty over future income trajectories with a monotonically increasing concave function of income, which penalises income volatility over time and over possible individual trajectories while assigning higher value to higher levels of economic resources available. On the expenditure side, we take into account different household characteristics by means of appropriate equivalence scales.

Date: 2020-06-26
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published

Downloads: (external link)
https://www.iser.essex.ac.uk/wp-content/uploads/fi ... /cempa/cempa2-20.pdf (application/pdf)

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:ese:cempwp:cempa2-20

Access Statistics for this paper

More papers in Centre for Microsimulation and Policy Analysis Working Paper Series from Centre for Microsimulation and Policy Analysis at the Institute for Social and Economic Research Contact information at EDIRC.
Bibliographic data for series maintained by Jonathan Nears ().