Walter Bossert () (Département de Sciences Economiques and CIREQ, Université de Montréal) Conchita d'Ambrosio () (Università di Milano-Bicocca and DIW Berlin)
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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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Paper provided by ECINEQ, Society for the Study of Economic Inequality in its series Working Papers with number
12.
Find related papers by JEL classification: D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
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