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A note on the measurement of poverty persistence

Antonio Villar ()
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Antonio Villar: Department of Economics, Universidad Pablo de Olavide

No 23.11, Working Papers from Universidad Pablo de Olavide, Department of Economics

Abstract: We propose in this paper a poverty index that considers poverty persistence as an integral part of poverty measurement. Poverty is regarded as a social welfare loss in a multiperiod scenario. Using familiar tools (logarithmic utilities and a utilitarian social welfare function) we obtain a poverty index which is mathematically simple, easy to interpret, that can be decomposed into incidence, intensity, and inequality, and is additively decomposable by population subgroups. It consists of the log of the geometric mean of individual intertemporal utility losses.

Keywords: Poverty persistence; welfares loss; logarithmic utility; utilitarian; decomposability. (search for similar items in EconPapers)
JEL-codes: D31 I32 (search for similar items in EconPapers)
Pages: 10 pages
Date: 2023
New Economics Papers: this item is included in nep-upt
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Persistent link: https://EconPapers.repec.org/RePEc:pab:wpaper:23.11

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