Discussion Papers no. 497

On the definition and measurement of chronic poverty

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.

Om publikasjonen

Tittel

On the definition and measurement of chronic poverty

Ansvarlige

Rolf Aaberge, Magne Mogstad

Serie og -nummer

Discussion Papers no. 497

Utgiver

Statistics Norway

Emne

Discussion Papers

Antall sider

29

Målform

Engelsk

Om Discussion Papers

Discussion papers comprise research papers intended for international journals and books. A preprint of a Discussion Paper may be longer and more elaborate than a standard journal article as it may include intermediate calculations, background material etc.

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