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Evaluating Patterns of Income Growth when Status Matters: A Robust Approach

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  • Flaviana Palmisano

Abstract

This paper addresses the problem of ranking growth episodes from a microeconomic perspective. While most of the existing criteria, framed in the pro‐poor growth tradition, are either based on anonymous individuals or are used to identify them on the basis of their status in the initial period, this paper proposes new criteria to evaluate growth, which are robust to the choice of the reference period used to identify individuals. Suitable dominance conditions that can be used to rank alternative growth processes are derived by means of an axiomatic approach. Moreover, the theoretical results are used to rank the different growth episodes that have taken place in the past decade in Australia, Germany, Korea, Switzerland, and the U.S.

Suggested Citation

  • Flaviana Palmisano, 2018. "Evaluating Patterns of Income Growth when Status Matters: A Robust Approach," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 64(1), pages 147-169, March.
    • Handle: RePEc:bla:revinw:v:64:y:2018:i:1:p:147-169
    DOI: 10.1111/roiw.12272
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    Cited by:

    1. Flaviana Palmisano & Ida Petrillo, 2022. "A general rank‐dependent approach for distributional comparisons," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 24(2), pages 380-409, April.
    2. Olivier Bargain & Maria Lo Bue & Francesco Palmisano, 2022. "Dynastic Measures of Intergenerational Mobility," Working Papers hal-03896551, HAL.
    3. Maria C. Lo Bue & Flaviana Palmisano, 2020. "The Individual Poverty Incidence of Growth," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 82(6), pages 1295-1321, December.
    4. Stephan Klasen & Maria C. Lo Bue & Vincenzo Prete, 2020. "What's behind pro-poor growth?: The role of shocks and measurement error," WIDER Working Paper Series wp-2020-16, World Institute for Development Economic Research (UNU-WIDER).
    5. Michael Savage, 2016. "Poorest Made Poorer? Decomposing income losses at the bottom of the income distribution during the Great Recession," Papers WP528, Economic and Social Research Institute (ESRI).
    6. Flaviana Palmisano & Ida Petrillo, 2021. "A general rank-dependent approach for distributional comparisons," Working Papers 567, ECINEQ, Society for the Study of Economic Inequality.

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    More about this item

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations

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