Measuring inequality of well-being with a correlation-sensitive multidimensional Gini index
AbstractWe propose to measure inequality of well-being with a multidimensional generalization of the Gini coefficient. We derive two inequality indices from their underlying social evaluation functions. These functions are conceived as a double aggregation functions: one across the dimensions of well-being, and another across the individuals. They differ only with respect to the sequencing of aggregations. We argue that the sequencing that does not exclude the Gini index to be sensitive to the correlation between the dimensions is more attractive. We illustrate both Gini indices using Russian household data on three dimensions of well-being: expenditure, health and education.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by ECINEQ, Society for the Study of Economic Inequality in its series Working Papers with number 124.
Length: 38 pages
Date of creation: 2009
Date of revision:
multidimensional inequality; single parameter Gini index; correlation increasing majorization; Russia.;
Other versions of this item:
- Maria Ana Lugo & Koen Decancq, 2009. "Measuring Inequality of Well-Being with a Correlation-Sensitive Multidimensional Gini Index," Economics Series Working Papers 459, University of Oxford, Department of Economics.
- 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
- O52 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Europe
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-09-11 (All new papers)
- NEP-CIS-2009-09-11 (Confederation of Independent States)
- NEP-HAP-2009-09-11 (Economics of Happiness)
- NEP-TRA-2009-09-11 (Transition Economics)
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.:
- Gaspart, F., 1996.
"Objective Measures of Well-Being and the Cooperative Production Problem,"
170, Notre-Dame de la Paix, Sciences Economiques et Sociales.
- FrÊdÊric Gaspart, 1997. "Objective measures of well-being and the cooperative production problem," Social Choice and Welfare, Springer, vol. 15(1), pages 95-112.
- Ferrer-i-Carbonell, Ada, 2005. "Income and well-being: an empirical analysis of the comparison income effect," Journal of Public Economics, Elsevier, vol. 89(5-6), pages 997-1019, June.
- Thibault Gajdos & John A. Weymark, 2003.
"Multidimensional generalized Gini indices,"
ICER Working Papers - Applied Mathematics Series
16-2003, ICER - International Centre for Economic Research.
- Thibault Gajdos & John A. Weymark, 2003. "Multidimensional Generalized Gini Indices," Vanderbilt University Department of Economics Working Papers 0311, Vanderbilt University Department of Economics, revised Jul 2003.
- Thibault Gajdos & John Weymark, 2005. "Multidimensional Generalized Gini Indices," UniversitÃ© Paris1 PanthÃ©on-Sorbonne (Post-Print and Working Papers) halshs-00085881, HAL.
- Thibault Gadjos & John A, Weymark, 2003. "Multidimensional Generalized Gini Indices," Working Papers 2003-16, Centre de Recherche en Economie et Statistique.
- DECANCK, Koen & DECOSTER, André & SCHOOKAERT, Erik, .
"The evolution of world inequality in well-being,"
CORE Discussion Papers RP
-2140, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Wagstaff, Adam & Paci, Pierella & van Doorslaer, Eddy, 1991. "On the measurement of inequalities in health," Social Science & Medicine, Elsevier, vol. 33(5), pages 545-557, January.
- Koen DECANCQ & María Ana LUGO, 2010.
"Weights in multidimensional indices of well-being: an overview,"
Center for Economic Studies - Discussion papers
ces10.06, Katholieke Universiteit Leuven, Centrum voor Economische Studiën.
- Koen Decancq & María Ana Lugo, 2013. "Weights in Multidimensional Indices of Wellbeing: An Overview," Econometric Reviews, Taylor & Francis Journals, vol. 32(1), pages 7-34, January.
- A. Atkinson, 2003. "Multidimensional Deprivation: Contrasting Social Welfare and Counting Approaches," Journal of Economic Inequality, Springer, vol. 1(1), pages 51-65, April.
- Indranil Dutta & Prasanta K. Pattanaik & Yongsheng Xu, 2003. "On Measuring Deprivation and the Standard of Living in a Multidimensional Framework on the Basis of Aggregate Data," Economica, London School of Economics and Political Science, vol. 70(278), pages 197-221, 05.
- Wagstaff, Adam, 2002.
"Inequality aversion, health inequalities and health achievement,"
Journal of Health Economics,
Elsevier, vol. 21(4), pages 627-641, July.
- Wagstaff, Adam, 2002. "Inequality aversion, health inequalities, and health achievement," Policy Research Working Paper Series 2765, The World Bank.
- John A. Weymark, 2003. "The Normative Approach to the Measurement of Multidimensional Inequality," Vanderbilt University Department of Economics Working Papers 0314, Vanderbilt University Department of Economics, revised Jan 2004.
- List, C., 1999.
"Multidimensional Inequality Measurement: a Proposal,"
9927, Economics Group, Nuffield College, University of Oxford.
- Christian List, 1999. "Multidimensional Inequality Measurement: A Proposal," Economics Series Working Papers 1999-W27, University of Oxford, Department of Economics.
- Maasoumi, Esfandiar, 1986. "The Measurement and Decomposition of Multi-dimensional Inequality," Econometrica, Econometric Society, vol. 54(4), pages 991-97, July.
- François Bourguignon & Satya Chakravarty, 2003.
"The Measurement of Multidimensional Poverty,"
Journal of Economic Inequality,
Springer, vol. 1(1), pages 25-49, April.
- M. Fleurbaey & A. Trannoy, 2000.
"The Impossibility of a Paretian Egalitarian,"
THEMA Working Papers
2000-26, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
- Allison, R. Andrew & Foster, James E., 2004. "Measuring health inequality using qualitative data," Journal of Health Economics, Elsevier, vol. 23(3), pages 505-524, May.
- Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
- 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.
- Koen DECANCQ, 2009.
"Copula-based measurement of dependence between dimensions of well-being,"
Center for Economic Studies - Discussion papers
ces09.24, Katholieke Universiteit Leuven, Centrum voor Economische Studiën.
- Decancq K, 2009. "Copula-based Measurement of Dependence Between Dimensions of Well-being," Health, Econometrics and Data Group (HEDG) Working Papers 09/32, HEDG, c/o Department of Economics, University of York.
- Larry G. Epstein & Stephen M. Tanny, 1980. "Increasing Generalized Correlation: A Definition and Some Economic Consequences," Canadian Journal of Economics, Canadian Economics Association, vol. 13(1), pages 16-34, February.
- Rietveld, Piet, 1990. "Multidimensional inequality comparisons : On aggravation and mitigation of inequalities," Economics Letters, Elsevier, vol. 32(2), pages 187-192, February.
- Doorslaer, Eddy van & Jones, Andrew M., 2003. "Inequalities in self-reported health: validation of a new approach to measurement," Journal of Health Economics, Elsevier, vol. 22(1), pages 61-87, January.
- Inna Blam & Sergey Kovalev, 2006. "Spontaneous commercialisation, inequality and the contradictions of compulsory medical insurance in transitional Russia," Journal of International Development, John Wiley & Sons, Ltd., vol. 18(3), pages 407-423.
- John A. Weymark & Kai-yuen Tsui, 1997. "Social welfare orderings for ratio-scale measurable utilities," Economic Theory, Springer, vol. 10(2), pages 241-256.
- Tsui Kai-Yuen, 1995. "Multidimensional Generalizations of the Relative and Absolute Inequality Indices: The Atkinson-Kolm-Sen Approach," Journal of Economic Theory, Elsevier, vol. 67(1), pages 251-265, October.
- Streeten, Paul, 1994. "Human Development: Means and Ends," American Economic Review, American Economic Association, vol. 84(2), pages 232-37, May.
- Michael Lokshin & Martin Ravallion, 2008. "Testing for an economic gradient in health status using subjective data," Health Economics, John Wiley & Sons, Ltd., vol. 17(11), pages 1237-1259.
- Ebert, Udo & Welsch, Heinz, 2004. "Meaningful environmental indices: a social choice approach," Journal of Environmental Economics and Management, Elsevier, vol. 47(2), pages 270-283, March.
- Walter Bossert & Satya R. Chakravarty & Conchita D'Ambrosio, 2009.
"Multidimensional poverty and material deprivation,"
129, ECINEQ, Society for the Study of Economic Inequality.
- BOSSERT, Walter & CHAKRAVARTY, Satya R. & D’AMBROSIO, Conchita, 2009. "Multidimensional Poverty and Material Deprivation," Cahiers de recherche 2009-11, Universite de Montreal, Departement de sciences economiques.
- BOSSERT, Walter & CHAKRAVARTY, Satya R. & D'AMBROSIO, Conchita, 2009. "Multidimensional Poverty and Material Deprivation," Cahiers de recherche 12-2009, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
- 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.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Maria Ana Lugo).
If references are entirely missing, you can add them using this form.