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Base project 1 (Phase 2, 2010-2012)

Vulnerability and household dynamics: Conceptual and empirical issues for Thailand and Vietnam

Stephan Klasen (Prof., Georg-August-Universität Göttingen)

Summary

This base project 1 plans to continue its conceptual and empirical work on the measurement and determinants of vulnerability to poverty as well as its link to household dynamics. To this end, it will continue to work on vulnerability measures and particularly focus on the empirical implementation with the panel household surveys in Thailand and Vietnam that will allow a careful ex post empirical validation and robustness analysis of various conceptual approaches to vulnerability in both income and non-income dimensions. In addition, the link between migration, household dynamics, and vulnerability will be an important focus of analysis to understand to what extent household dynamics are a source of shocks and/or a coping mechanism to deal with them. Going beyond household dynamics, the project will, in collaboration with other sub-projects, analyze behavioral responses to risk more generally and assess the static efficiency costs of such responses. Lastly, the project will, again in collaboration with other sub-projects, study determinants of vulnerability with particular emphasis on the impact of food and financial crisis on vulnerability and coping mechanisms in these two countries.