Asset‐based measurement of poverty

TLDR

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. The study investigates poverty measures based on household net worth and presents fresh cross‑national evidence from the Luxembourg Wealth Study. The authors review and assess two main approaches—income–net worth measures and asset‑poverty—and provide fresh cross‑national evidence from the Luxembourg Wealth Study. © 2010 by the Association for Public Policy Analysis and Management.

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.