Towards Comparative and Aggregate Vulnerability: An Analysis of Welfare Distributions in Rural Provinces in Thailand and Vietnam

Bernd Hardeweg, Andreas Wagener and Hermann Waibel

No 14, Proceedings of the German Development Economics Conference, Hannover 2010 from Verein für Socialpolitik, Research Committee Development Economics

Abstract: Several measures of vulnerability to poverty have been suggested in the literature. In practise, only little is known about the robustness of vulnerability comparisons based on these often quite specific measures. The theory of stochastic orders can be applied to shed some light on such issues. In the DFG research project "Impact of Shocks on the Vulnerability to Poverty: Consequences for Development of Emerging Southeast Asian Economies" (DFG FOR 756), an extensive panel survey was carried out in six rural provinces of Thailand and Vietnam in 2007. We establish cumulative distribution functions for income and consumption at the provincial level and search for stochastic dominance relations between these distributions. Our comparisons allow for initial, but quite robust conclusions on welfare and provide benchmarks for assessing the vulnerability to poverty in the research regions.

Keywords: welfare distribution; stochastic ordering; vulnerability (search for similar items in EconPapers)
JEL-codes: D31 I32 O15 (search for similar items in EconPapers)
Date: 2010
New Economics Papers: this item is included in nep-dev and nep-sea
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