Given a poverty line, a person who is non-poor (poor) currently may not be treated as non-poor (poor) in a vulnerable situation. The poverty line is adjusted in the presence of vulnerability such that the utility of a person at the current poverty line and that at the adjusted poverty line become identical. Using an additive model of vulnerability, it is shown that if the utility function obeys constant Arrow-Pratt absolute risk aversion, then the harmonized poverty line is a simple absolute augmentation of the current poverty line.
A new study, published in a special feature of the December 17 issue of theProceedings of the National Academy of Sciences, brings together nine of the world’s most important economic modeling teams with a focus on agriculture to compare their results about the future of agriculture.
In the face of unprecedented deforestation and biodiversity loss, policy makers are increasingly using financial incentives to encourage conservation. However, a research team led by the National University of Singapore (NUS) revealed that in the long run, conservation incentives may struggle to compete with future agricultural yields. Their findings were first published online in the Proceedings of the National Academy of Sciences on 15 April 2013.