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Multidimensional affluence: Theory and applications to Germany and the US

  • Andreas Peichl

    ()

    (Institute for the Study of Labor (IZA), University of Cologne, ISER and CESifo)

  • Nico Pestel

    ()

    (Institute for the Study of Labor (IZA) and University of Cologne)

This paper suggests multidimensional affluence measures for the top of the distribution. In contrast to commonly used top income shares, they allow the analysis of the extent, intensity and breadth of affluence in several dimensions within a common framework. We illustrate this by analyzing the role of income and wealth as dimensions of multidimensional well-being in Germany and the US in 2007 as well as for the US over the period 1989–2007. We find distinct country differences with the country ranking depending on the measure. While in Germany wealth predominantly contributes to the intensity of affluence, income is more important in the US.

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File URL: http://www.ecineq.org/milano/WP/ECINEQ2011-218.pdf
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Paper provided by ECINEQ, Society for the Study of Economic Inequality in its series Working Papers with number 218.

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Length: 45 pages
Date of creation: 2011
Date of revision:
Handle: RePEc:inq:inqwps:ecineq2011-218
Contact details of provider: Web page: http://www.ecineq.orgEmail:


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