Poverty Measurement Under Risk Aversion Using Panel Data

Guillermo Cruces, Paul Makdissi, Quentin T. Wodon
2004 Contributions in Economic Analysis & Policy  
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.
doi:10.2202/1538-0645.1194 fatcat:4nfdqdthube2xbsbbgpl3z2hay