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Author Aaberge, Rolf ♦ Mogstad, Magne
Source EconStor
Content type Text
Publisher Institute for the Study of Labor (IZA)
File Format PDF
Language English
Subject Domain (in DDC) Social sciences ♦ Economics
Subject Keyword Armut ♦ Einkommen ♦ Intertemporale Allokation ♦ Lebenszyklus ♦ Messung ♦ Theorie
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.
Part of series IZA Discussion Papers x2659
Learning Resource Type Article
Publisher Date 2007-01-01
Publisher Place Bonn
Rights Holder