A BEJEAP Contributions article.

Abstract

This paper shows how to take into account risk aversion when measuring poverty under income variability. An application to British panel data suggests that income and poverty comparisons between the self-employed and other groups of households are sensitive to assumptions on the degree of risk aversion. The results point to the importance of panel data in order to account for risk aversion and income variability in the measurement of poverty.

Submitted: August 21, 2003 · Accepted: July 11, 2004 · Published: September 13, 2004

Originally published in Contributions to Economic Analysis & Policy.

Recommended Citation

Cruces, Guillermo; Makdissi, Paul; and Wodon, Quentin T. (2004) "Poverty Measurement Under Risk Aversion Using Panel Data," Contributions to Economic Analysis & Policy: Vol. 3 : Iss. 1, Article 13.
Available at: http://www.bepress.com/bejeap/contributions/vol3/iss1/art13