In this paper, using cross sectional data and following the methodology proposed by Chaudhuri et al. (2002), an estimation of household vulnerability to poverty in Nicaragua is made. The household vulnerability is assessed as the probability that the expected value of the logarithm of...

This paper introduces a new approach for measuring vulnerability to poverty, using the standard downside mean-semideviation as a risk parameter. We identify vulnerability by comparing the uncertain outcomes of household well-being with poverty line in a mean-risk behavior framework.