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Multidimensional Affluence: Theory and Applications to Germany and the US

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  • Peichl, Andreas

    ()
    (ZEW Mannheim)

  • Pestel, Nico

    ()
    (IZA)

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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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5926.

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Length: 46 pages
Date of creation: Aug 2011
Date of revision:
Handle: RePEc:iza:izadps:dp5926

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

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Citations

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Cited by:
  1. 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.
  2. 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.
  3. Arup Bose & Satya Chakravarty & Conchita D’Ambrosio, 2014. "Richness orderings," Journal of Economic Inequality, Springer, vol. 12(1), pages 5-22, March.
  4. Michał Brzeziński, 2013. "Variance estimation for richness measures," Working Papers 2013-03, Faculty of Economic Sciences, University of Warsaw.
  5. Ceriani, Lidia & Verme, Paolo, 2013. "The income lever and the allocation of aid," Policy Research Working Paper Series 6367, The World Bank.
  6. 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.

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