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Dynamic Measures of Individual Deprivation

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  • Walter Bossert
  • Conchita D’Ambrosio

Abstract

We introduce a one-parameter class of individual deprivation measures. Motivated by a suggestion of Runciman, we modify Yitzhaki’s index by multiplying it by a function that is interpreted as measuring the part of deprivation generated by an agent’s observation that others in his reference group move on to a higher level of income than himself. The parameter reflects the relative weight given to these dynamic considerations, and the standard Yitzhaki index is obtained as a special case. In addition, we characterize more general classes of measures that pay attention to this important dynamic aspect of deprivation
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  • Walter Bossert & Conchita D’Ambrosio, 2007. "Dynamic Measures of Individual Deprivation," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 28(1), pages 77-88, January.
    • Handle: RePEc:spr:sochwe:v:28:y:2007:i:1:p:77-88
    DOI: 10.1007/s00355-006-0150-y
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    11. Bossert, Walter & D'Ambrosio, Conchita, 2006. "Reference groups and individual deprivation," Economics Letters, Elsevier, vol. 90(3), pages 421-426, March.
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    Cited by:

    1. Clark, Andrew E. & D'Ambrosio, Conchita, 2014. "Attitudes to Income Inequality: Experimental and Survey Evidence," IZA Discussion Papers 8136, Institute of Labor Economics (IZA).
    2. Conchita D'Ambrosio & Joachim R. Frick, 2012. "Individual Wellbeing in a Dynamic Perspective," Economica, London School of Economics and Political Science, vol. 79(314), pages 284-302, April.
    3. Satya Chakravarty, 2007. "A deprivation-based axiomatic characterization of the absolute Bonferroni index of inequality," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 5(3), pages 339-351, December.
    4. Stark, Oded & Bielawski, Jakub & Falniowski, Fryderyk, 2017. "A class of proximity-sensitive measures of relative deprivation," Economics Letters, Elsevier, vol. 160(C), pages 105-110.
    5. Alexandre BERTIN & David LEYLE, 2007. "Estimating multidimensional poverty in a developing country. The case of the “Observatoire de Guinée Maritime » Project (In French)," Cahiers du GREThA (2007-2019) 2007-17, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    6. Paul, Satya & Guilbert, Daniel, 2013. "Income–happiness paradox in Australia: Testing the theories of adaptation and social comparison," Economic Modelling, Elsevier, vol. 30(C), pages 900-910.
    7. Edward Anderson & Lucio Esposito, 2014. "On the joint evaluation of absolute and relative deprivation," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 12(3), pages 411-428, September.
    8. Shlomo Yitzhaki & Edna Schechtman, 2005. "The properties of the extended Gini measures of variability and inequality," Metron - International Journal of Statistics, Dipartimento di Statistica, Probabilità e Statistiche Applicate - University of Rome, vol. 0(3), pages 401-433.
    9. Ana I. Moro Egido, 2021. "Social Comparisons; the behavioural component," ThE Papers 21/04, Department of Economic Theory and Economic History of the University of Granada..
    10. Walter Bossert & Conchita D’Ambrosio, 2020. "Losing ground in the income hierarchy: relative deprivation revisited," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 18(1), pages 1-12, March.
    11. Amany A. El Anshasy & Mrittika Shamsuddin & Marina-Selini Katsaiti, 2023. "Financial Wellbeing and International Migration Intentions: Evidence from Global Surveys," Journal of Happiness Studies, Springer, vol. 24(7), pages 2261-2289, October.

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    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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