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A class of distribution and association sensitive multidimensional welfare indices

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  • Suman Seth

Abstract

This paper axiomatically characterizes a class of two-parameter generalized mean social welfare indices having two or more dimensions of well-being. These indices, under appropriate parametric restrictions, are sensitive to two distinct forms of inter-personal inequality. The first form of inequality is concerned with the dispersion of each dimensional achievement across the population. The second is concerned with the association or correlation across dimensions, reflecting the observation that the correlation of individual components of well-being across dimensions is relevant for social welfare evaluation. It is shown that many existing multidimensional welfare indices are closely related to this new class. Statistical tests are developed to verify the significance of the evaluations generated by these indices. Finally, the class of indices is applied to Indonesian data to analyze the impact on financial crisis on the country’s social welfare using two waves of Indonesian Family Life Surveys (IFLS). Copyright Springer Science+Business Media, LLC. 2013

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  • Suman Seth, 2013. "A class of distribution and association sensitive multidimensional welfare indices," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 11(2), pages 133-162, June.
    • Handle: RePEc:kap:jecinq:v:11:y:2013:i:2:p:133-162
    DOI: 10.1007/s10888-011-9210-3
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    Cited by:

    1. Suman Seth, 2009. "Inequality, Interactions, and Human Development," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 10(3), pages 375-396.
    2. Jaya Krishnakumar, 2018. "Trade-Offs in a Multidimensional Human Development Index," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 138(3), pages 991-1022, August.
    3. Gaël Giraud & Cécile Renouard & Hélène L'Huillier & Raphaële de la Martinière & Camille Sutter, 2012. "Relational Capability: A Multidimensional Approach," Documents de travail du Centre d'Economie de la Sorbonne 12096, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    4. Croci Angelini, Elisabetta & Michelangeli, Alessandra, 2012. "Axiomatic measurement of multidimensional well-being inequality: Some distributional questions," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(5), pages 548-557.
    5. Gerhard Kockläuner, 2013. "Die neuen Indizes des Bericht über die menschliche Entwicklung 2010," AStA Wirtschafts- und Sozialstatistisches Archiv, Springer;Deutsche Statistische Gesellschaft - German Statistical Society, vol. 7(3), pages 121-133, December.
    6. Jeni Klugman & Francisco Rodríguez & Hyung-Jin Choi, 2011. "The HDI 2010: new controversies, old critiques," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 9(2), pages 249-288, June.
    7. Koen Decancq, 2017. "Measuring Multidimensional Inequality in the OECD Member Countries with a Distribution-Sensitive Better Life Index," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 131(3), pages 1057-1086, April.
    8. Bénédicte H. Apouey & Jacques Silber, 2016. "Performance and Inequality in Health: A Comparison of Child and Maternal Health across Asia," Research on Economic Inequality, in: Inequality after the 20th Century: Papers from the Sixth ECINEQ Meeting, volume 24, pages 181-214, Emerald Group Publishing Limited.
    9. Eduardo Zambrano, 2014. "An axiomatization of the human development index," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 42(4), pages 853-872, April.
    10. Vanesa Jordá & José Sarabia, 2015. "International Convergence in Well-Being Indicators," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 120(1), pages 1-27, January.
    11. Suman Seth, Sabina Alkire, 2014. "Measuring and Decomposing Inequality among the Multidimensionally Poor Using Ordinal Data: A Counting Approach," OPHI Working Papers 68, Queen Elizabeth House, University of Oxford.
    12. Gaëlle Ferrant, 2014. "The Multidimensional Gender Inequalities Index (MGII): A Descriptive Analysis of Gender Inequalities Using MCA," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 115(2), pages 653-690, January.
    13. Bosmans, Kristof & Decancq, Koen & Ooghe, Erwin, 2015. "What do normative indices of multidimensional inequality really measure?," Journal of Public Economics, Elsevier, vol. 130(C), pages 94-104.
    14. Lauri Peterson, 2014. "The Measurement of Non-economic Inequality in Well-Being Indices," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 119(2), pages 581-598, November.
    15. César García‐Gómez & Ana Pérez & Mercedes Prieto‐Alaiz, 2021. "Copula‐based analysis of multivariate dependence patterns between dimensions of poverty in Europe," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 67(1), pages 165-195, March.
    16. Francesco Burchi & Nicole Rippin & Claudio E. Montenegro, 2018. "From income poverty to multidimensional poverty—an international comparison," One Pager Arabic 400, International Policy Centre for Inclusive Growth.
    17. MUSSARD Stéphane & PI ALPERIN Maria Noel, 2016. "A Two-parameter Family of Socio-economic Health Inequality Indices: Accounting for Risk and Inequality Aversions," LISER Working Paper Series 2016-15, Luxembourg Institute of Socio-Economic Research (LISER).
    18. Carmen Herrero & Ricardo Mart�nez & Antonio Villar, 2012. "A Newer Human Development Index," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 13(2), pages 247-268, May.
    19. Iñaki Permanyer, 2013. "Are UNDP Indices Appropriate to Capture Gender Inequalities in Europe?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 110(3), pages 927-950, February.
    20. Suman Seth & Antonio Villar, 2014. "Human Development, Inequality and Poverty: empirical findings," Working Papers 14.11, Universidad Pablo de Olavide, Department of Economics.
    21. John Creedy & Nicolas Hérault†, 2011. "Decomposing Inequality and Social Welfare Changes : The Use of Alternative Welfare Metrics," Department of Economics - Working Papers Series 1121, The University of Melbourne.
    22. Suman Seth and Maria Emma Santos, 2018. "Multidimensional Inequality and Human Development," OPHI Working Papers ophiwp114_2.pdf, Queen Elizabeth House, University of Oxford.
    23. Antonio Villar, 2016. "Educational poverty as a welfare loss: Low performance in the OECD according to PISA 2012," Working Papers 16.04, Universidad Pablo de Olavide, Department of Economics.
    24. Yoko Kawada & Yuta Nakamura & Shuhei Otani, 2019. "An Axiomatic Foundation of the Multiplicative Human Development Index," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 65(4), pages 771-784, December.
    25. Yadira Diaz, 2015. "Differences in needs and multidimensional deprivation measurement," Working Papers 387, ECINEQ, Society for the Study of Economic Inequality.

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    More about this item

    Keywords

    Social welfare measurement; Multidimensional inequality; Multidimensional association; Equally distributed equivalent; Generalized mean; O12; D63; I31;
    All these keywords.

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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