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Vulnerability In India: A Simple Consumption-based Approach |
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Atanu Sengupta,Manas Ghose |
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Measuring vulnerability is an important issue for development planners. Vulnerability essentially measures a household’s proneness to shock. However, the availability of such dynamic panel data is a problem. Hence, we have to depend on cross-section data. Measuring a dynamic concept by using cross-sectional data assumes some distributional specifications. In this paper, we have developed an alternative method based on consumption specifications. For this, we have to differentiate between poverty and welfare vulnerability theoretically. Once this is done, one can use cross-sectional NSS data to estimate vulnerability. The empirical estimates indicate wide inter-state and inter-group variation. However, the entire situation is quite alarming. |
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