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A class of proximity-sensitive measures of relative deprivation

Author

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  • Stark, Oded
  • Bielawski, Jakub
  • Falniowski, Fryderyk

Abstract

We introduce a new class of generalized measures of relative deprivation. The class takes the form of a power mean of order p. A characteristic of the class is that depending on the value of the proximity-sensitive parameter p, the class is capable of accommodating both a decreasing weight (the case of p>1), and an increasing weight (the case of p∈(0,1)) accorded to given changes in the incomes of the individuals who are wealthier than the reference individual, depending on their proximity in the income distribution to the reference individual.

Suggested Citation

  • Stark, Oded & Bielawski, Jakub & Falniowski, Fryderyk, 2017. "A class of proximity-sensitive measures of relative deprivation," Economics Letters, Elsevier, vol. 160(C), pages 105-110.
  • Handle: RePEc:eee:ecolet:v:160:y:2017:i:c:p:105-110
    DOI: 10.1016/j.econlet.2017.08.002
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    References listed on IDEAS

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    1. Blackorby, Charles & Donaldson, David, 1982. "Ratio-Scale and Translation-Scale Full Interpersonal Comparability without Domain Restrictions: Admissible Social-Evaluation Functions," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 23(2), pages 249-268, June.
    2. Paul, Satya, 1991. "An index of relative deprivation," Economics Letters, Elsevier, vol. 36(3), pages 337-341.
    3. Obloj , Tomasz & Zenger , Todd, 2015. "Incentives, Social Comparison Costs, and the Proximity of Envy's Object," HEC Research Papers Series 1085, HEC Paris.
    4. Oded Stark & Walter Hyll, 2011. "On the Economic Architecture of the Workplace: Repercussions of Social Comparisons among Heterogeneous Workers," Journal of Labor Economics, University of Chicago Press, vol. 29(2), pages 349-375.
    5. Quintana-Domeque, Climent & Wohlfart, Johannes, 2016. "“Relative concerns for consumption at the top”: An intertemporal analysis for the UK," Journal of Economic Behavior & Organization, Elsevier, vol. 129(C), pages 172-194.
    6. Bossert, Walter & D’Ambrosio, Conchita, 2014. "Proximity-sensitive individual deprivation measures," Economics Letters, Elsevier, vol. 122(2), pages 125-128.
    7. Lucio Esposito, 2010. "Upper Boundedness For The Measurement Of Relative Deprivation," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 56(3), pages 632-639, September.
    8. Walter Bossert & Conchita D’Ambrosio, 2007. "Dynamic Measures of Individual Deprivation," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 28(1), pages 77-88, January.
    9. Shlomo Yitzhaki, 1979. "Relative Deprivation and the Gini Coefficient," The Quarterly Journal of Economics, Oxford University Press, vol. 93(2), pages 321-324.
    10. Chakravarty, S. R. & Chakraborty, A. B., 1984. "On indices of relative deprivation," Economics Letters, Elsevier, vol. 14(2-3), pages 283-287.
    11. You-qiang Wang & Kai-yuen Tsui, 2000. "A new class of deprivation-based generalized Gini indices," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 16(2), pages 363-377.
    12. John D. Hey & Peter J. Lambert, 1980. "Relative Deprivation and the Gini Coefficient: Comment," The Quarterly Journal of Economics, Oxford University Press, vol. 95(3), pages 567-573.
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    1. repec:eee:deveco:v:135:y:2018:i:c:p:77-84 is not listed on IDEAS
    2. Stark, Oded & Zawojska, Ewa & Kohler, Wilhelm & Szczygielski, Krzysztof, 2018. "An adverse social welfare effect of a doubly gainful trade," Journal of Development Economics, Elsevier, vol. 135(C), pages 77-84.

    More about this item

    Keywords

    Income distribution; Relative deprivation; Sensitivity to income transfers between wealthier individuals; Sensitivity to the proximity of changes in others’ incomes;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D33 - Microeconomics - - Distribution - - - Factor Income Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies

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