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Measuring Vulnerability and Poverty: Estimates for Rural India

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  • Raghav Gaiha
  • Katsushi Imai

Abstract

This paper measures the vulnerability of households in rural India, based upon the ICRISAT panel survey. We employ both ex ante and ex post measures of vulnerability. The latter are decomposed into aggregate and idiosyncratic risks and poverty components. Our decomposition shows that idiosyncratic risks account for the largest share, followed by poverty and aggregate risks. Despite some degree of risk-sharing, the landless or small farmers are vulnerable to idiosyncratic risks, forcing them to reduce consumption.

Suggested Citation

  • Raghav Gaiha & Katsushi Imai, 2008. "Measuring Vulnerability and Poverty: Estimates for Rural India," WIDER Working Paper Series RP2008-40, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:rp2008-40
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    Keywords

    Government policy (Poor); Poverty measurement; Risk; Risk management;
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