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Measuring the Impact of Vulnerability on the Number of Poor: A New Methodology with Empirical Illustrations

dc.contributor.authorSatya R. Chakravarty
dc.contributor.authorNachiketa Chattopadhyay
dc.contributor.authorJacques Silber
dc.contributor.authorGuanghua Wan
dc.date.accessioned2017-06-01T15:25:45Z
dc.date.available2017-06-01T15:25:45Z
dc.date.issued2016-11-30
dc.identifier.urihttp://hdl.handle.net/11540/6978
dc.description.abstractGiven a poverty line, a person who is non-poor (poor) currently may not be treated as non-poor (poor) in a vulnerable situation. This paper looks at the impact of vulnerability on the poverty line. The poverty line is adjusted in the presence of vulnerability such that the utility of a person at the current poverty line and that at the adjusted poverty line become identical. Using an additive model of vulnerability, it is shown that if the utility function obeys constant Arrow-Pratt absolute risk aversion, then the harmonized poverty line is a simple absolute augmentation of the current poverty line. On the other hand, under a multiplicative model of vulnerability with constant Arrow-Pratt relative risk aversion, the revised poverty line is a simple relative augmentation of the current poverty line. The paper contains empirical illustrations which assume that constant relative risk aversion applies to countries involved in the Asia-Pacific region. Upward adjustment of the poverty line under increased vulnerability, as captured through the value of the risk aversion parameter, is also observed.
dc.languageEnglish
dc.publisherAsian Development Bank Institute
dc.titleMeasuring the Impact of Vulnerability on the Number of Poor: A New Methodology with Empirical Illustrations
dc.typeWorking Papers
dc.subject.expertDevelopment Indicators
dc.subject.expertEnvironmental Indicators
dc.subject.expertEconomic Indicators
dc.subject.expertEducational Indicators
dc.subject.expertDemographic Indicators
dc.subject.expertHealth Indicators
dc.subject.expertDisadvantaged Groups
dc.subject.expertLow Income Groups
dc.subject.expertSocially Disadvantaged Children
dc.subject.expertRural Conditions
dc.subject.expertRural Development
dc.subject.expertSocial Conditions
dc.subject.expertUrban Development
dc.subject.expertUrban Sociology
dc.subject.expertProject finance
dc.subject.expertResources evaluation
dc.subject.expertNeeds assessment
dc.subject.expertCost benefit analysis
dc.subject.adbAlleviating Poverty
dc.subject.adbAnti-Poverty
dc.subject.adbExtreme Poverty
dc.subject.adbFight Against Poverty
dc.subject.adbGlobal Poverty
dc.subject.adbHealth Aspects Of Poverty
dc.subject.adbIndicators Of Poverty
dc.subject.adbParticipatory Poverty Assessment
dc.subject.adbPoverty Eradication
dc.subject.adbPoverty Analysis
dc.subject.adbPoverty In Developing Countries
dc.subject.adbPoverty Reduction Efforts
dc.subject.adbUrban Poverty
dc.subject.adbResults-Based Monitoring And Evaluation
dc.subject.adbProject Evaluation & Review Technique
dc.subject.adbPerformance Evaluation
dc.subject.adbImpact Evaluation Reports
dc.subject.adbEvaluation Criteria
dc.subject.naturalPoor
dc.subject.naturalEconomic forecasting
dc.subject.naturalHealth expectancy
dc.subject.naturalSocial groups
dc.subject.naturalPolitical participation
dc.subject.naturalDistribution of income
dc.subject.naturalInequality of income
dc.subject.naturalDeveloping countries
dc.subject.naturalRural community development
dc.subject.naturalMass society
dc.subject.naturalSocial change
dc.subject.naturalSocial policy
dc.subject.naturalSocial stability
dc.subject.naturalPopulation
dc.subject.naturalSustainable development
dc.subject.naturalPeasantry
dc.subject.naturalUrban policy
dc.subject.naturalUrban renewal
dc.subject.naturalResults mapping
dc.subject.naturalRisk assessment
dc.subject.naturalParticipatory monitoring and evaluation
dc.subject.naturalCost effectiveness
dc.title.seriesADBI Working Papers
dc.title.volumeNo. 612
dc.contributor.imprintAsian Development Bank Institute
oar.themePoverty
oar.themeEvaluation
oar.adminregionAsia and the Pacific Region
oar.countryBangladesh
oar.countryBhutan
oar.countryIndia
oar.countryMaldives
oar.countryNepal
oar.countrySri Lanka
oar.countryBrunei Darussalam
oar.countryCambodia
oar.countryIndonesia
oar.countryLao People's Democratic
oar.countryMalaysia
oar.countryMyanmar
oar.countryPhilippines
oar.countrySingapore
oar.countryThailand
oar.countryViet Nam
oar.countryCook Islands
oar.countryFiji Islands
oar.countryKiribati
oar.countryMarshall Islands
oar.countryFederated States of Micronesia
oar.countryNauru
oar.countryPalau
oar.countryPapua New Guinea
oar.countrySamoa
oar.countrySolomon Islands
oar.countryTimor-Leste
oar.countryTonga
oar.countryTuvalu
oar.countryVanuatu
oar.countryAfghanistan
oar.countryArmenia
oar.countryAzerbaijan
oar.countryGeorgia
oar.countryKazakhstan
oar.countryKyrgyz Republic
oar.countryPakistan
oar.countryTajikistan
oar.countryTurkmenistan
oar.countryUzbekistan
oar.countryPeople's Republic of China
oar.countryHong Kong
oar.countryChina
oar.countryRepublic of Korea
oar.countryMongolia
oar.countryTaipei,China
oar.identifierOAR-006631
oar.authorChakravarty, Satya R.
oar.authorChattopadhyay, Nachiketa
oar.authorSilber, Jacques
oar.authorWan, Guanghua
oar.importTRUE
oar.googlescholar.linkpresenttrue


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  • ADBI Working Papers
    The Asian Development Bank Institute (ADBI) Working Paper series is a continuation of the formerly named Discussion Paper series which began in January 2003. The numbering of the papers continued without interruption or change. ADBI was established in 1997 in Tokyo, Japan, to help build capacity, skills, and knowledge related to poverty reduction and other areas that support long-term growth and competitiveness in developing economies in Asia and the Pacific.

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