SANTOS Maria Emma
congresos y reuniones científicas
Measuring Chronic Poverty
FOSTER, JAMES ERIC; SANTOS, MARIA EMMA
Conferencia; Third Meeting of the Society for the Study of Economic Inequality; 2009
The Society for the Study of Economic Inequality
This paper presents a new class of chronic poverty measures which builds on Jalan and Ravallions approach. We propose an identification methodology of the chronically poor that departs from the two extreme prevailing ones, which implicitly assume either perfect or zero income substitutability across periods. Using the generalized mean of order as the income standard of an individuals income distribution across periods, we allow for a whole range of alternative and explicit degrees of substitutability, represented in parameter. The mentioned class of income standards is also used as part of the aggregation step, aggregating incomes across periods. We then use the decomposable version of the Clark, Hemming and Ulph (1985) class of poverty measures to aggregate across people, obtaining a convenient new class of chronic poverty measures. We show this class to be the only one among a generalized type of Jalan and Ravallions measures that satisfies a particular axiom that relates overall chronic poverty with per-period poverty when the poverty status does not change. The measure is illustrated with an empirical application using panel data from urban areas in Argentina.