This article assesses the importance of risk in the measurement of rural poverty in Burkina Faso. The analysis is based on longitudinal data collected as part of monitoring and evaluation activities for the PNGT-2 project on community development in the country. The first part of the study is...

We develop a model of social choice over lotteries, where people's psychological characteristics are mutable, their preferences may be incomplete, and approximate interpersonal comparisons of well-being are possible. Formally, we suppose individual preferences are described by a...

This paper revisits the relationship between inequality and redistribution in a panel of advanced OECD countries. Using panel data methods that hold constant a variety of determinants of redistributive spending, I find a non-monotonic relationship between pre-tax-and transfer distribution of...

Developments since the introduction of the 1988 Basel Capital Accord have resulted in growing realisation that new forms of risks have emerged and that previously existing and managed forms require further redress. The revised Capital Accord, Basel II, evolved to a form of meta regulation – a...

The two sides of envy, destructive and competitive, give rise to qualitatively different equilibria, depending on economic, institutional, and cultural environment. If inequality is high, property rights are poorly protected, and social comparisons are strong, the society is likely to settle in...

Any activity or economic effort is based on a number of unknown and uncertain factors or opportunities simply because its subject is located in the future. All decisions or actions that will lead to a production process or act of foreign trade is inevitably initiated or taken in circumstances of...

By utilizing the extreme dependence structure and the conditional probability of joint failure (CPJF) between banks, this paper characterizes a risk-stability index (RSI) that quantifies (i) common distress of banks, (ii) distress between specific banks, and (iii) distress to a portfolio related...

This paper presents a dynamic competitive equilibrium model in which heterogeneity in time preferences alone can generate the observed patterns of wealth and income inequality in the United States. This model generalizes the standard deterministic neoclassical growth model by introducing (i) a...

This paper models the stochastic behavior of large-scale terrorism using extreme value methods. We utilize a unique dataset composed of roughly 26,000 observations. These data provide a rich description of domestic and international terrorism between 1968 and 2006. Currently, a credible...

The commonly used poverty indices measure the overall level of poverty in a society but fail to capture the differential intensity across different socioeconomic groups. This paper proposes a new measure, Inequality of Poverty Index (similar to dissimilarity index in the literature on inequality...