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Stephan Klasen

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Stephan Klasen

This impressive research review discusses the most important contributions by some of the leading scholars in the field of poverty measurement. It analyses what constitutes poverty and associated poverty measures, as well as conceptual and empirical approaches to set poverty lines for both national and international settings. The papers discussed in this research review also discuss national and international income poverty measures, multidimensional poverty indices, and ways to capture poverty dynamics.
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Stephan Klasen

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Stephan Klasen

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Nanak Kakwani and Hyun Hwa Son

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Nanak Kakwani and Hyun Hwa Son

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Nanak Kakwani and Hyun Hwa Son

This research review offers an insight to some of the most important questions economists and policymakers have been grappling over. A substantial amount of research has been carried out using cross-country regression models, resulting in a better and improved understanding of the linkage between economic growth and poverty reduction. The literature on cross-country regressions, however, has led to conflicting conclusions. Reconciling diverging messages makes it difficult to accurately inform policy-making. Based on a selection of influential papers, this volume provides a critical review of the literature. Scholars who envision a world free of extreme poverty will find this analysis particularly valuable.
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Nanak Kakwani and Hyun Hwa Son

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Cesar Calvo

Two competing strands exist within the theoretical literature on vulnerability to poverty, each with its own policy implications. Vulnerability may be seen as low expected utility, and thus stress the danger of self-perpetuating poverty, as the poor shy away from risky, yet necessary decisions to escape their hardship. Alternatively, vulnerability is often construed as expected poverty, and provides policy makers with a forward-looking viewpoint that both sheds light on and raises new questions on how best to formulate the targeting of social spending. This chapter provides an overview of the theoretical work underpinning each of these competing views.

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Lidia Ceriani

Vulnerability to poverty, interpreted as a forward-looking inclusion of uncertainty in the analysis of poverty, has only recently become part of the literature on poverty. This chapter first introduces different definitions of vulnerability to poverty, and then moves on to more operational aspects of its measurement. Through a review of the existing literature, a series of approaches is presented for the selection of an indicator of vulnerability, the development of methods for forecasting future outcomes and variability of the indicator, and finally the identification of a vulnerability threshold. The chapter concludes with an overview of the covariates used by the literature to assess future poverty status, and presents some final remarks.