household consumed permanently at the poverty line. The results indicate that vulnerability is very sensitive to the time …Most measures of vulnerability are a-theoretic and essentially static. In this paper we use a stochastic Ramsey model … to find a household's optimal welfare and we measure vulnerability as the shortfall from the welfare attained if the …

aim to reflect local perceptions of poverty. This paper demonstrates how such a measure can be constructed, using data … from a field experiment on poverty targeting in Indonesia. It then explores the potential impact of using this welfare … used as a meaningful basis for targeting and poverty measurement. …

, the first micro-based estimate of the effect of shocks on growth. About two-thirds of the impact of risk is due to the ex … suggest that the effectiveness of policy interventions which reduce exposure to shocks or help households in risk man …There has been a revival of interest in the effect of risk on economic growth. We quantify both ex ante and ex post …

simulation experiments(over a 20-year period) to quantify the importance of convergence, household fixed effectsand shocks. First …, we find powerful convergence. In the absence of shocks and withouthousehold fixed effects there is rapid growth over the … shocks have strong and persistent effects. In this model shocksaffect aggregate growth both ex ante and ex post. These …

technological non convexity exists. It follows that certain households are poverty trapped, that the initial distribution of wealth …

insurance to employers: when firms are hit by temporary shocks the effect on profits is cushioned by risk sharing with workers … missing markets. Our evidence suggests that risk sharing accounts for a substantial part of the observed effect of shocks on …-sections between wages and profitability. The alternative explanation of risk sharing between workers and employers has not been tested …

differences in risk premia. We deduct testable hypotheses on the basis of which we empirically analyze the impact of uncertainty …

This paper presents a new axiomatic characterization of risk measures that are additive for independent random … variables. In contrast to previous work, we include an axiom that guarantees monotonicity of the risk measure. Furthermore, the …. The risk measure characterized can be regarded as a mixed exponential premium. …