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Multidimensional Measurement of Richness: Theory and an Application to Germany

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  • Andreas Peichl
  • Nico Pestel

Abstract

Closely following recent innovations in the literature on the multidimensional measurement of poverty, this paper provides similar measures for the top of the distribution using a dual cutoff method to identify individuals, who can be considered as rich in a multidimensional setting. We use this framework to analyze the role of wealth, health and education, in addition to income, as dimensions of multidimensional well-being in Germany. Our analysis shows that more than half of the German population is affluent in at least one dimension and less than 1% is affluent in all four dimensions. The likelihood of being rich in all dimensions is highest for prime-aged males from the West who live in couple households without children. Mobility between different affluence counts between 2002 and 2007 is rather low and existing changes are mostly driven by health and to a lesser extent by wealth.

Suggested Citation

  • Andreas Peichl & Nico Pestel, 2010. "Multidimensional Measurement of Richness: Theory and an Application to Germany," SOEPpapers on Multidisciplinary Panel Data Research 295, DIW Berlin, The German Socio-Economic Panel (SOEP).
  • Handle: RePEc:diw:diwsop:diw_sp295
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    Cited by:

    1. Nuno Crespo & Sandrina B. Moreira & Nadia Simoes, 2015. "An Integrated Approach for the Measurement of Inequality, Poverty, and Richness," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 62(5), pages 531-555, December.
    2. Andreas Peichl & Nico Pestel, 2013. "Multidimensional Well‐Being at the Top: Evidence for Germany," Fiscal Studies, Institute for Fiscal Studies, vol. 34, pages 355-371, September.
    3. J. A. García & Rosa Rodriguez-Sánchez & J. Fdez-Valdivia & Daniel Torres-Salinas & Francisco Herrera, 2012. "Ranking of research output of universities on the basis of the multidimensional prestige of influential fields: Spanish universities as a case of study," Scientometrics, Springer;Akadémiai Kiadó, vol. 93(3), pages 1081-1099, December.
    4. J. A. García & Rosa Rodriguez-Sánchez & J. Fdez-Valdivia, 2012. "A comparison of top economics departments in the US and EU on the basis of the multidimensional prestige of influential articles in 2010," Scientometrics, Springer;Akadémiai Kiadó, vol. 93(3), pages 681-698, December.

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    More about this item

    Keywords

    Affluence; multidimensional measurement; mobility; elites;
    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
    • I0 - Health, Education, and Welfare - - General
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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