Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/192479 
Year of Publication: 
2007
Series/Report no.: 
Discussion Papers No. 497
Publisher: 
Statistics Norway, Research Department, Oslo
Abstract: 
As an alternative to the conventional methods for measuring chronic poverty, this paper proposes an interpersonal comparable measure of permanent income as a basis for defining and measuring chronic poverty. This approach accounts for the fact that individuals regularly undertake inter-period income transfers. Moreover, the approach allows for individual-specific interest rates on borrowing and saving as well as for the presence of liquidity constraints. Due to the general nature the proposed method proves useful for evaluating the theoretical basis of the standard methods for measuring chronic poverty.
Subjects: 
Intertemporal choice
liquidity constraints
permanent income
chronic poverty.
JEL: 
D71
D91
I32
Document Type: 
Working Paper

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