Asset versus consumption poverty and poverty dynamics in rural Ethiopia

Several studies have shown conceptually that assets form a more robust basis for identifying the poor than do flow variables like expenditures or income. Asset-based poverty classification can be used to distinguish structural from stochastic poverty and can enable projection of poverty dynamics thr...

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Autores principales: Liverpool-Tasie, Lenis Saweda, Winter-Nelson, Alex
Formato: Journal Article
Lenguaje:Inglés
Publicado: Wiley 2011
Materias:
Acceso en línea:https://hdl.handle.net/10568/152958
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author Liverpool-Tasie, Lenis Saweda
Winter-Nelson, Alex
author_browse Liverpool-Tasie, Lenis Saweda
Winter-Nelson, Alex
author_facet Liverpool-Tasie, Lenis Saweda
Winter-Nelson, Alex
author_sort Liverpool-Tasie, Lenis Saweda
collection Repository of Agricultural Research Outputs (CGSpace)
description Several studies have shown conceptually that assets form a more robust basis for identifying the poor than do flow variables like expenditures or income. Asset-based poverty classification can be used to distinguish structural from stochastic poverty and can enable projection of poverty dynamics through time. Nonetheless, little work has empirically compared poverty measurement based on assets and expenditures to indicate the practical implications of the choice of poverty measure. This article uses panel data (between 1994 and 2004) from Ethiopia to generate asset- and expenditures-based poverty classifications. Asset dynamics are then explored to test for the existence of multiple asset index equilibria that could constitute evidence of poverty traps. Results provide evidence of multiple equilibria and show that the asset-based poverty classifications predict future asset and expenditures poverty status more accurately than expenditures-based measures. The findings confirm that the asset-based measure could be used to more carefully target poverty interventions.
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spelling CGSpace1529582024-11-15T08:52:53Z Asset versus consumption poverty and poverty dynamics in rural Ethiopia Liverpool-Tasie, Lenis Saweda Winter-Nelson, Alex poverty equilibrium Several studies have shown conceptually that assets form a more robust basis for identifying the poor than do flow variables like expenditures or income. Asset-based poverty classification can be used to distinguish structural from stochastic poverty and can enable projection of poverty dynamics through time. Nonetheless, little work has empirically compared poverty measurement based on assets and expenditures to indicate the practical implications of the choice of poverty measure. This article uses panel data (between 1994 and 2004) from Ethiopia to generate asset- and expenditures-based poverty classifications. Asset dynamics are then explored to test for the existence of multiple asset index equilibria that could constitute evidence of poverty traps. Results provide evidence of multiple equilibria and show that the asset-based poverty classifications predict future asset and expenditures poverty status more accurately than expenditures-based measures. The findings confirm that the asset-based measure could be used to more carefully target poverty interventions. 2011-03 2024-10-01T13:55:24Z 2024-10-01T13:55:24Z Journal Article https://hdl.handle.net/10568/152958 en Limited Access Wiley Liverpool-Tasie, Lenis Saweda; Winter-Nelson, Alex. 2011. Asset versus consumption poverty and poverty dynamics in rural Ethiopia. Agricultural Economics 42(2): 221-233. https://doi.org/10.1111/j.1574-0862.2010.00479.x
spellingShingle poverty
equilibrium
Liverpool-Tasie, Lenis Saweda
Winter-Nelson, Alex
Asset versus consumption poverty and poverty dynamics in rural Ethiopia
title Asset versus consumption poverty and poverty dynamics in rural Ethiopia
title_full Asset versus consumption poverty and poverty dynamics in rural Ethiopia
title_fullStr Asset versus consumption poverty and poverty dynamics in rural Ethiopia
title_full_unstemmed Asset versus consumption poverty and poverty dynamics in rural Ethiopia
title_short Asset versus consumption poverty and poverty dynamics in rural Ethiopia
title_sort asset versus consumption poverty and poverty dynamics in rural ethiopia
topic poverty
equilibrium
url https://hdl.handle.net/10568/152958
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AT winternelsonalex assetversusconsumptionpovertyandpovertydynamicsinruralethiopia