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Multidimensional affluence: Theory and applications to Germany and the US

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  • Andreas Peichl

    ()
    (Institute for the Study of Labor (IZA), University of Cologne, ISER and CESifo)

  • Nico Pestel

    ()
    (Institute for the Study of Labor (IZA) and University of Cologne)

Abstract

This paper suggests multidimensional affluence measures for the top of the distribution. In contrast to commonly used top income shares, they allow the analysis of the extent, intensity and breadth of affluence in several dimensions within a common framework. We illustrate this by analyzing the role of income and wealth as dimensions of multidimensional well-being in Germany and the US in 2007 as well as for the US over the period 1989–2007. We find distinct country differences with the country ranking depending on the measure. While in Germany wealth predominantly contributes to the intensity of affluence, income is more important in the US.

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File URL: http://www.ecineq.org/milano/WP/ECINEQ2011-218.pdf
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Bibliographic Info

Paper provided by ECINEQ, Society for the Study of Economic Inequality in its series Working Papers with number 218.

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Length: 45 pages
Date of creation: 2011
Date of revision:
Handle: RePEc:inq:inqwps:ecineq2011-218

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Keywords: top incomes; multidimensional measurement; richness; wealth; inequality;

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Citations

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Cited by:
  1. Lidia Ceriani & Paolo Verme, 2013. "The Income Lever and the Allocation of Aid," Working Papers 286, ECINEQ, Society for the Study of Economic Inequality.
  2. Chameni Nembua, Célestin & Biloa Essimi, Jean Aristide, 2013. "Who is Rich in Cameroun?
    [Who is Rich in Cameroon?]
    ," MPRA Paper 48024, University Library of Munich, Germany.
  3. Michał Brzeziński, 2013. "Variance estimation for richness measures," Working Papers 2013-03, Faculty of Economic Sciences, University of Warsaw.
  4. BILOA ESSIMI, Jean Aristide & CHAMENI NEMBUA, Celestin, 2013. "Estimation D’Une Ligne D’Affluence : Cas Du Cameroun
    [Affluence Line Estimation: Case Of Cameroon]
    ," MPRA Paper 48095, University Library of Munich, Germany.
  5. Andreas Peichl & Nico Pestel, 2013. "Multidimensional Well‐Being at the Top: Evidence for Germany," Fiscal Studies, Institute for Fiscal Studies, vol. 34, pages 355-371, 09.

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