Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/86052
Authors: 
Elbers, Chris
Gunning, Jan Willem
Year of Publication: 
2003
Series/Report no.: 
Tinbergen Institute Discussion Paper 03-070/2
Abstract: 
Most measures of vulnerability are a-theoretic and essentially static. In this paper we use a stochastic Ramsey model to find a household's optimal welfare and we measure vulnerability as the shortfall from the welfare attained if the household consumed permanently at the poverty line. The results indicate that vulnerability is very sensitive to the time horizon considered. We find that the accuracy of existing regression-based vulnerability measures can be greatly improved by including asset measures in the regression.
Subjects: 
vulnerability
expected poverty
risk
Ramsey model
consumption regressions
JEL: 
D12
D60
D91
O12
Document Type: 
Working Paper

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