caa a22 4500 467889392 CHVBK 20180406152744.0 cr unu---uuuuu 170328e20061201xx s 000 0 eng 10.1007/s10888-005-9018-0 doi (NATIONALLICENCE)springer-10.1007/s10888-005-9018-0 Kurosaki Takashi Institute of Economic Research, Hitotsubashi University, 2-1 Naka, Kunitachi, 186-8603, Tokyo, Japan aut The measurement of transient poverty: Theory and application to Pakistan [Elektronische Daten] [Takashi Kurosaki] The present paper investigates the measurement of transient poverty when each person's welfare level fluctuates due to exogenous risk. The paper namely characterizes the sensitivity of transient/chronic poverty decomposition with respect to the poverty line and to the expected welfare level so that the decomposition analysis will be based on solid theoretical foundations and be robust empirically. Theoretical results show that poverty measures associated with prudent risk preferences perform better than other measures in assuring that the value of transient poverty increases with the depth of chronic poverty and that the decomposition is not highly sensitive to the poverty line. Poverty measures such as those associated with constant relative risk aversion are thus superior to popular Foster-Greer-Thorbecke (FGT) measures such as headcount, poverty gap, and squared poverty gap indices. These theoretical arguments are confirmed empirically by the application of the decomposition to a two-period household panel dataset from rural Pakistan. The relative magnitudes of transient versus chronic poverty are more robust to changes in the poverty line when poverty measures associated with constant relative risk aversion are used than when FGT poverty measures are used. Springer Science+Business Media, Inc., 2006 chronic poverty nationallicence poverty measurement nationallicence prudence nationallicence risk nationallicence transient poverty nationallicence The Journal of Economic Inequality Kluwer Academic Publishers-Plenum Publishers; http://www.springer-ny.com 4/3(2006-12-01), 325-345 1569-1721 4:3<325 2006 4 10888 https://doi.org/10.1007/s10888-005-9018-0 text/html Onlinezugriff via DOI 1 research-article jats NATIONALLICENCE 856 40 https://doi.org/10.1007/s10888-005-9018-0 text/html Onlinezugriff via DOI NATIONALLICENCE 100 1- Kurosaki Takashi Institute of Economic Research, Hitotsubashi University, 2-1 Naka, Kunitachi, 186-8603, Tokyo, Japan aut NATIONALLICENCE 773 0- The Journal of Economic Inequality Kluwer Academic Publishers-Plenum Publishers; http://www.springer-ny.com 4/3(2006-12-01), 325-345 1569-1721 4:3<325 2006 4 10888 Metadata rights reserved Springer special CC-BY-NC licence nationallicence BK010053 XK010053 XK010000 NATIONALLICENCE NATIONALLICENCE NL-springer