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A Class of Chronic Poverty Measures

James Foster (fosterje@email.gwu.edu)

No 701, Vanderbilt University Department of Economics Working Papers from Vanderbilt University Department of Economics

Abstract: This paper presents a new family of chronic poverty measures based on the Pa poverty measures of Foster, Greer,and Thorbecke (1984). The chronically poor are identified using two cutoffs: a standard poverty line, which identifies the time periods during which a person is poor; and a duration cutoff, which is the minimum percentage of time a person must be in poverty in order to be chronically poor. The new family of chronic poverty measures is constructed by raising the (per-period) normalized gaps of the chronically poor to a power a > 0 and then aggregating. The resulting indices, which can be viewed as duration adjusted Pa measures, satisfy a battery of properties for chronic poverty indices, including time monotonicity and population decomposability. An illustrative application of the family is provided using data from Argentina.

Keywords: Chronic Poverty; Distribution; Measurement; Axioms (search for similar items in EconPapers)
JEL-codes: D31 D63 I32 (search for similar items in EconPapers)
Date: 2007-01
New Economics Papers: this item is included in nep-ltv
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (39)

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Persistent link: https://EconPapers.repec.org/RePEc:van:wpaper:0701

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