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Distance-based social index numbers: a unifying approach

Author

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  • Weber, Shlomo
  • Bossert, Walter
  • D'Ambrosio, Conchita

Abstract

We present a unified approach to the design of social index numbers. Our starting point is a model that employs an exogenously given partition of the population into subgroups. A general parameterized class of group-dependent measures of deprivation is characterized, based on the differences between the income (or wealth) levels of an individual and those who are better off. We then continue to show that the general structure of our class is capable of accommodating a plethora of indices, including measures of inequality and polarization as well as distance-based measures of phenomena such as diversity and fractionalization.

Suggested Citation

  • Weber, Shlomo & Bossert, Walter & D'Ambrosio, Conchita, 2020. "Distance-based social index numbers: a unifying approach," CEPR Discussion Papers 14994, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:14994
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    3. Bich, Philippe & Chateauneuf, Alain & Ventura, Caroline, 2023. "Social tension order: A new approach to inequality reduction," Journal of Mathematical Economics, Elsevier, vol. 108(C).

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    More about this item

    Keywords

    Group-dependent deprivation; Inequality; Polarization; Diversity; Fractionalization; Social index numbers;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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