TY  - RPRT
        AU  - Aaberge, Rolf
AU  - Mogstad, Magne
        TI  - On the Definition and Measurement of Chronic Poverty
        PY  - 2007/Mar/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 2659
        UR  - https://www.iza.org/publications/dp2659
        AB  - 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.
        KW  - intertemporal choice
KW  - liquidity constraints
KW  - permanent income
KW  - chronic poverty
        ER  -