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Reference Groups and Individual Deprivation

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  • BOSSERT, Walter
  • D’AMBROSIO, Conchita

Abstract

We provide an axiomatization of Yitzhaki’s index of individual deprivation. Our result differs from an earlier characterization due to Ebert and Moyes in the way the reference group of an individual is represented in the model. Ebert and Moyes require the index to be defined for all logically possible reference groups, whereas we employ the standard definition of the reference group as the set of all agents in a society. As a consequence of this modification, some of the axioms used by Ebert and Moyes can no longer be applied and we provide alternative formulations.

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Bibliographic Info

Paper provided by Centre interuniversitaire de recherche en économie quantitative, CIREQ in its series Cahiers de recherche with number 13-2004.

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Length: 10 pages
Date of creation: 2004
Date of revision:
Handle: RePEc:mtl:montec:13-2004

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Keywords: income distribution; deprivation; equity;

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  1. Sen, Amartya K, 1976. "Poverty: An Ordinal Approach to Measurement," Econometrica, Econometric Society, vol. 44(2), pages 219-31, March.
  2. Yitzhaki, Shlomo, 1979. "Relative Deprivation and the Gini Coefficient," The Quarterly Journal of Economics, MIT Press, vol. 93(2), pages 321-24, May.
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