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Article

Asset‐based measurement of poverty

Andrea BrandoliniBank of Italy, Department for Structural Economic AnalysisSilvia MagriBank of Italy, Department for Structural Economic AnalysisTimothy M. SmeedingInstitute for Research on Poverty and La Follette School of Public Affairs, University of Wisconsin–Madison
2010en
ABI

Abstract

Abstract Poverty is generally defined as income or expenditure insufficiency, but the economic condition of a household also depends on its real and financial asset holdings. This paper investigates measures of poverty that rely on indicators of household net worth. We review and assess two main approaches followed in the literature: income–net worth measures and asset‐poverty. We provide fresh cross‐national evidence based on data from the Luxembourg Wealth Study. © 2010 by the Association for Public Policy Analysis and Management.

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