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Households' Vulnerability to Covariate and Idiosyncratic Shocks

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dc.creator Harttgen, Kenneth
dc.creator Günther, Isabel
dc.date 2006
dc.date.accessioned 2013-10-16T07:07:00Z
dc.date.available 2013-10-16T07:07:00Z
dc.date.issued 2013-10-16
dc.identifier http://hdl.handle.net/10419/19838
dc.identifier ppn:517906309
dc.identifier RePEc:zbw:gdec06:4733
dc.identifier.uri http://koha.mediu.edu.my:8181/xmlui/handle/10419/19838
dc.description Households in developing countries are frequently hit by severe idiosyncratic and covariate shocks resulting in high consumption volatility. A household's currently observed poverty status might therefore not be a good indicator of the household's general poverty risk, or in other words its vulnerability to poverty. Although several measurements to analyze vulnerability to poverty have recently been proposed, empirical studies are still rare as the data requirements for these measurements are not met by the surveys that are available for most developing countries. In this paper, we propose a simple method to empirically assess the impact of idiosyncratic and covariate shocks on households' vulnerability, which can be used in a wide context as it relies on commonly available living standard measurement surveys. We apply our approach to data from Madagascar and show, that whereas covariate shocks have a substantial impact on rural households' vulnerability, urban households' vulnerability is largely determined by idiosyncratic shocks.
dc.language eng
dc.publisher
dc.relation Proceedings of the German Development Economics Conference, Berlin 2006 / Verein für Socialpolitik, Research Committee Development Economics 10
dc.rights http://www.econstor.eu/dspace/Nutzungsbedingungen
dc.subject I32
dc.subject D60
dc.subject ddc:330
dc.subject Vulnerability to poverty
dc.subject idiosyncratic and covariate shocks
dc.subject multilevel modelling
dc.title Households' Vulnerability to Covariate and Idiosyncratic Shocks
dc.type doc-type:conferenceObject


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