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Measuring Economic Insecurity

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Author Info
Walter Bossert () (Department of Economics and CIREQ, University of Montreal)
Conchita D'Ambrosio () (Università di Milano-Bicocca, DIW Berlin and Econpubblica, Università Bocconi)

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Abstract

We provide a systematic treatment of the notion of economic insecurity, assuming that an individual’s sentiment of insecurity depends on the current wealth level and its variations experienced in the past. We think of wealth as a comprehensive variable encompassing anything that may help in coping with adverse occurrences. The current wealth level could also be interpreted as incorporating the individual’s evaluation of future prospects. Variations in wealth experienced in the recent past are given higher weight than experiences that occurred in the more distant past. Two classes of measures are characterized with sets of plausible and intuitive axioms.

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File URL: http://www.ecineq.org/milano/WP/ECINEQ2009-111.pdf
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Publisher Info
Paper provided by ECINEQ, Society for the Study of Economic Inequality in its series Working Papers with number 111.

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Length: 18 pages
Date of creation: 2009
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Handle: RePEc:inq:inqwps:ecineq2009-111

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Related research
Keywords: Insecurity; Wealth Distribution; Social Index Numbers;

Find related papers by JEL classification:
D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Weymark, John A., 1981. "Generalized gini inequality indices," Mathematical Social Sciences, Elsevier, vol. 1(4), pages 409-430, August. [Downloadable!] (restricted)
  2. Donaldson, David & Weymark, John A., 1980. "A single-parameter generalization of the Gini indices of inequality," Journal of Economic Theory, Elsevier, vol. 22(1), pages 67-86, February. [Downloadable!] (restricted)
  3. Bossert, Walter, 1990. "An axiomatization of the single-series Ginis," Journal of Economic Theory, Elsevier, vol. 50(1), pages 82-92, February. [Downloadable!] (restricted)
  4. Lars Osberg, 1998. "Economic Insecurity," Discussion Papers 0088, University of New South Wales, Social Policy Research Centre. [Downloadable!]
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This page was last updated on 2009-12-1.

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