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History-dependent growth incidence: a characterization and an application to the economic crisis in Italy

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  • Flaviana Palmisano
  • Dirk Van de gaer

Abstract

We propose a characterization of an aggregate measure of growth that takes into account the initial economic conditions of individuals. Our measure is a weighted average of individuals’ income growth with weights that are decreasing with the rank of the individual in the initial income distribution. We apply our theoretical framework to evaluate the growth processes experienced by the Italian population. Even when we correct for the differences in mean income growth, and focus on the distribution of growth only, the 2008-2010 growth process was the worst of the last decade.

Suggested Citation

  • Flaviana Palmisano & Dirk Van de gaer, 2016. "History-dependent growth incidence: a characterization and an application to the economic crisis in Italy," Oxford Economic Papers, Oxford University Press, vol. 68(2), pages 585-603.
  • Handle: RePEc:oup:oxecpp:v:68:y:2016:i:2:p:585-603.
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    Citations

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    Cited by:

    1. Stephen P. Jenkins & Philippe Van Kerm, 2016. "Assessing Individual Income Growth," Economica, London School of Economics and Political Science, vol. 83(332), pages 679-703, October.
    2. Elena Bárcena & Olga Cantó, 2018. "A simple subgroup decomposable measure of downward (and upward) income mobility," Working Papers 472, ECINEQ, Society for the Study of Economic Inequality.
    3. Creedy, John & Gemmell, Norman, 2017. "Illustrating Income Mobility: Two New Measures," Working Paper Series 6693, Victoria University of Wellington, Chair in Public Finance.
    4. Markus Jäntti & Stephen P. Jenkins, 2013. "Income Mobility," SOEPpapers on Multidisciplinary Panel Data Research 607, DIW Berlin, The German Socio-Economic Panel (SOEP).
    5. repec:bla:revinw:v:64:y:2018:i:1:p:147-169 is not listed on IDEAS
    6. Florent Bresson & Jean-Yves Duclos & Flaviana Palmisano, 2019. "Intertemporal pro-poorness," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 52(1), pages 65-96, January.
    7. repec:spr:joecin:v:14:y:2016:i:3:d:10.1007_s10888-016-9321-y is not listed on IDEAS
    8. repec:bpj:bejeap:v:19:y:2019:i:2:p:22:n:11 is not listed on IDEAS
    9. Shatakshee Dhongde & Jacques Silber, 2016. "On distributional change, pro-poor growth and convergence," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 14(3), pages 249-267, September.
    10. Palmisano Flaviana & Lo Bue Maria, 2019. "The individual poverty incidence of growth," WIDER Working Paper Series wp-2019-41, World Institute for Development Economic Research (UNU-WIDER).
    11. repec:fan:epepep:v:html10.3280/ep2017-001002 is not listed on IDEAS

    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
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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