Skip to main content
Article thumbnail
Location of Repository

Income fluctuation, poverty and well-being over time: theory and application to Argentina

By Guillermo Cruces


This paper studies poverty as a dynamic phenomenon, motivated by the recurring economic crises that affect developing countries and the incidence of income fluctuations on household welfare. While the increasing availability of household panel data has been exploited in theoretical analysis and empirical applications, the methodological and applied literatures still lack a unified framework. Echoing Atkinson (1987), this paper addresses the question of how poverty should be measured over time – or, in more general terms, how to measure well-being based on repeated observations of household income. The paper develops and illustrates a set of tools for empirical work based on theoretically sound extensions of the existing methodology for static distributional analysis. Moreover, this framework encompasses some of the existing approaches as special cases. These tools are illustrated with longitudinal data for Argentina in the 1995- 2002 period, which is well suited for this type of analysis given the large fluctuations in household income due to the repeated economic crises in the country

Topics: HN Social history and conditions. Social problems. Social reform, HD Industries. Land use. Labor, HV Social pathology. Social and public welfare. Criminology
Publisher: Suntory and Toyota International Centres for Economics and Related Disciplines, London School of Economics and Political Science
Year: 2005
OAI identifier:
Provided by: LSE Research Online

Suggested articles


  1. (2003b): “Risk-Adjusted Poverty in Argentina: Measurement and Determinants,” doi
  2. (2003). Advanced Economic Theory, Lecture 1,” Unpublished lecture notes, London School of Economics.
  3. (1991). Anomalies: The Endowment Effect, Loss Aversion, doi
  4. (2003). Argentina Crisis and Poverty 2003. A Poverty Assessment,” Report 26127-AR in two volumes, Poverty Reduction and Economic Management,
  5. (2002). Argentina: A Short History, doi
  6. (2000). Argentina: Poor People in a Rich Country,” Report 19992-AR, Poverty Reduction and Economic Management,
  7. (1997). Back to Bentham? doi
  8. (2003). Business as Usual. Political Methods and Economic Normalcy
  9. (1988). Canasta Básica de Alimentos - Gran Buenos Aires,” Documento de trabajo no. 3., INDEC / IPA, Buenos Aires.
  10. (2003). Conceptual and Measurement Issues
  11. (1972). Consumption Decisions Under Uncertainty,” doi
  12. (1999). Doing It Now or doi
  13. (1980). Economics and Consumer Behavior, doi
  14. (2004). El Ciclo de la Ilusión y el Desencanto, Ariel, Buenos Aires.
  15. (1970). Essays in the Theory of Risk-Bearing, doi
  16. (2004). Evaluating Different Approaches to Estimating Vulnerability,” Unpublished, doi
  17. (1988). Ex Post Efficiency and Ex Post Welfare: doi
  18. (1981). Ex-Ante and Ex-Post Welfare Optimality under doi
  19. (1988). Expected Poverty under Risk-Induced Welfare doi
  20. (2003). Great Expectations and Hard Times: The Argentine Convertibility Plan,” doi
  21. (1996). Household Saving: Micro Theories and Micro Facts,”
  22. (2004). Incidencia de la Pobreza y de la Indigencia en los Aglomerados Urbanos,” Información de Prensa, Instituto Nacional de Estadísticas y Censos, Buenos Aires.
  23. (1969). Increasing Risk: A Definition and its Economics Consequences,” Cowles Foundation Discussion Paper 275; published in two parts in the
  24. (1982). Introduction,” in Panel Data on Incomes, edited by
  25. (2000). Is Transient Poverty Different? Evidence for Rural China,” doi
  26. (2003). Measurement of Chronic and Transient Poverty: Theory and Application to doi
  27. (2000). Measurement of Inequality,” doi
  28. (1995). Measuring Inequality, London School of Economics Handbooks in Economics, Harvester Wheatsheaf/Prentice
  29. (1995). Microeconomic Theory,
  30. (2005). Microeconomics. Principles and Analysis, Forthcoming, doi
  31. (1989). On the Distribution of Lifetime Income in a Lognormal Model,” doi
  32. (1987). On the Measurement of doi
  33. (1970). On the Measurement of Inequality,” doi
  34. (2003). Perfil Demográfico de Pobres y Nuevos Pobres,”
  35. (1994). Poverty Comparisons: Fundamentals of Pure and Applied Economics,
  36. (1998). Poverty Lines in Theory and Practice,” Living Standards Measurement Study Working Paper 133, World Bank,
  37. (2004). PovertyMeasurementUnder Risk Aversion Using Panel Data,” Contributions to Economic Analysis doi
  38. (1968). Saving and Uncertainty: The Precautionary Demand for Saving,” doi
  39. (1995). Savings, Credit and Insurance,” doi
  40. (1997). The Analysis of Household Surveys, Johns Hopkins Press for the World Bank, doi
  41. (1979). The Definition of Lifetime Income,” Institute for Research on Poverty Discussion paper 566-79,
  42. (2003). The Economics of Poverty and Inequality, doi
  43. (1970). The Effect of Uncertainty on Saving Decisions,” doi
  44. (1981). The Theory of Commodity Price Stabilization, doi
  45. (1948). The Utility Analysis of Choices Involving Risk,” doi
  46. (1944). Theory of Games and Economic Behavior, doi
  47. (1995). Transient and Chronic Poverty in Turbulent Times:
  48. (1998). Transient Poverty in Postreform Rural China,” doi
  49. (2003). Vulnerability: an Axiomatic Approach,” Unpublished,
  50. (1987). Welfare Ratios and Distributionally Sensitive Cost-Benefit Analysis,” doi

To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.