Despite the presence of related indicators within the existing data toolbox, a new measure which identifies and prioritizes the economically Key Takeaways. How should one measure the impact on well-being of economic insecurity and vulnerability in these very different contexts? In this paper, economic vulnerability is defined as the exposure of an economy to exogenous shocks, arising out of economic openness, while economic resilience is defined as the policy-induced ability of an economy to withstand or recover from the effects of such shocks. In recent decades, countries throughout Latin America and the Caribbean (LAC) have been developing rapidly in terms of economic development and incomes. The paper focuses separately on changes in families’ economic security over the 1989–2007 period, when six of the measures are available, and over the 1995–2007 period, when all twelve measures are available. economic consequences for affected areas and their inhabitants. Our work draws on research that exam-ines vulnerability as a social condition or as a measure of the resilience of population groups when confronted by disaster (Cutter, Boruff, & Shirley, 2003). Economic vulnerability of developing countries is not really a new issue. The EVI is a measure of structural vulnerability to economic and environmental shocks Sarewitz et al., 2003 ; Cannon, 1994 ) have argued that vulnerability is not the same as poverty. Measures the share of population who are victims of disasters, defined as people killed are affected (i.e. In this paper we propose to extend this measure by taking into account additional variables related to resilience, i.e., the ability of a country to recover after a shock. Mansoor Ahmad. If we consider the development literature of forty years ago, the issue of instability, especially for primary exports and international prices, made up a significant part in the analysis of the problems faced by developing countries. Some suggest measuring economic growth through increases in the standard of living, although this can be tricky to quantify. Corpus ID: 129949336. The project seeks to derive poverty measures that are based on prospect theory, an alternative model to expected utility theory for decision-making under uncertainty. The first map is the Global Social Vulnerability Map, which is a composite index that was developed to measure characteristics or qualities of social systems that create the potential for loss or harm. Different methods, such … We take a utilitarian approach to defining vulnerability in a risky environment. State of Israel 2 Presentation Plan Presentations to be discussed Romain Duval “Economic vulnerability to macroeconomic shocks: the role of policies and institutions”. In this paper we construct a measure of ‘vulnerability’ which allows us to quantify the welfare loss associated with poverty as well as the loss associated with any of a variety of different sources of uncertainty. The “vulnerability” perspective on economic development (e.g. In recent years, economic insecurity has been discussed by several authors (e.g. Those who are under a constant threat of poverty are often observed to choose to make safer, but less lucrative, investments than those who are free from the fear of poverty. The vulnerability index measures the aggregate amount of capital (in dollars) needed under that scenario to bring each bank’s capital ratio to at least 10 percent. economic efficiency and long-run welfare of households. Socio-Economic Vulnerability Maps. Bossert and d’Ambrosio (2009), Osberg (2009)). Here, a step was taken to ensure the relevance of the data within the domain of social and economic vulnerability research. The agriculture sector is fundamental to this development from the economic and social perspectives. Economic and Environmental Vulnerability Index (EVI) Rationale. However, this sector is highly sensitive to changes in temperature and precipitation and increased climate change impacts. Syllabus 11 S953 – Measuring Socioeconomic Vulnerability- Customized Indicator for better public policies.pdf However, those issues are deeply complex and a successful project implementation needs metrics that take into account multidimensional socioeconomic … In addition to data about the epidemic hazard prediction, we use data from 20142019 tocompute measures - for exposure, vulnerability, and resilience of the local economy to the shock of an epidemic. INCREASE VULNERABILITY AN APPROACH TO MEASURING VULNERABILITY FOR ES INTERVENTIONS This section offers one suggested approach for assessing economic vulnerability for ES interventions as one part of a larger approach for assessing aspects of vulnerability relevant to OVC programs. This literature review provides an overview of the tools and methods used to measure vulnerability, as pertains to development interventions focused on economic strengthening, at the population level as well as the household and individual level. Since it is difficult to measure the social vulnerability of populations relatively, variables were collected as proxy measures to represent the concept. A vulnerability index is a measure of the exposure of a population to some hazard. The new EIB COVID-19 Economic Vulnerability Index examines which countries are the most vulnerable to a virus such as the COVID-19 and which countries should take the most stringent precautions to prevent the spread of such a virus. Measuring Structural Economic Vulnerability in Africa* A contribution to the Handbook of Africa and Economics @inproceedings{Guillaumont2014MeasuringSE, title={Measuring Structural Economic Vulnerability in Africa* A contribution to the Handbook of Africa and Economics}, author={P. Guillaumont}, year={2014} } Economics, and the Environment, 2002) to examine the components of social vulnerability. One reason for this is that many economic variables are correlated with each other and one variable could be used to represent others. It is the only report currently available that takes a closer look at how developing countries are affected by the crisis. economic vulnerability but whose policies are deleterious to economic resilience, thereby exposing them to the adverse effects of shocks.5 These four scenarios are depicted in Figure 1, where the axes measure inherent economic vulnerability and nurtured resilience, respectively. Vulnerability of vulnerability measures 29 October session 3.2f Discussion Talk Shlomo Yitzhaki Central Bureau of Statistics, Israel. Business. This index measures the magnitude of systemic spillover losses among banks caused by asset fire sales under hypothetical stress scenarios, and is expressed as a fraction of system capital. Traditional poverty measures neglect several important dimensions of household welfare. This project investigates issues concerning poverty and vulnerability in developing countries building on behavioural economics. Vulnerability is commonly defined as the degree to which a system is likely to experience harm due to hazards (Villagrán de León, 2006). Economic vulnerability . In this conceptualization (Figure 1), risk (an objective measure of the likelihood of a hazard event) interacts with mitigation (measures to lessen risks or reduce their impact) to produce the hazard potential. Typically, the index is a composite of multiple quantitative indicators that via some formula, delivers a single numerical result. Economic Vulnerability Index Rationale Measures of poverty, deprivation, food insecurity do exist in Nepal, measuring undernutrition, poverty, household wealth and food consumption to name a few. While theoretically, either continuous or categorical variables may be used for constructing measures of economic vulnerability, the interpretation will be easier if the variable is categorical. We measure the economic risk of epidemics at a geo-spatially detailed resolution. Food vulnerability exists when food-related shocks stress a household’s ability to acquire safe and nutritious food. … In an attempt to measure the economic vulnerability phenomenon, economic vulnerability indices have been constructed, generally including a relatively small number of variables, often limited to three or four. November 6, 2020 . Most vulnerable are oil exporting countries and those that are highly dependent on tourism The new European Investment Bank … Efforts to quantify socio-economic vulnerability and poverty remain limited, and information of this kind is rarely integrated into risk assessments (GFDRR, 2014a). MA. Macroeconomic vulnerability is currently measured by the United Nations through a weighted average of eight variables related to exposure to shocks, and frequency of shocks, known as Economic Vulnerability Index (EVI). But the entitlements theory of Sen (1981) and contributions to risk and vulnerability analysis (e.g. Through such an index "diverse issues can be combined into a standardised framework...making comparisons possible". Vulnerability is an important aspect of households' experience of poverty. 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