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Multidimensional Affluence: Theory and Applications to Germany and the US

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  • Peichl, Andreas

    () (Ifo Institute for Economic Research)

  • Pestel, Nico

    () (IZA)

Abstract

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.

Suggested Citation

  • Peichl, Andreas & Pestel, Nico, 2011. "Multidimensional Affluence: Theory and Applications to Germany and the US," IZA Discussion Papers 5926, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp5926
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    References listed on IDEAS

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    Cited by:

    1. 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.
    2. Kontbay-Busun, Sine & Peichl, Andreas, 2014. "Multidimensional affluence in income and wealth in the eurozone: A cross country comparison using the HFCS," ZEW Discussion Papers 14-124, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    3. Lidia Ceriani & Paolo Verme, 2014. "The Income Lever and the Allocation of Aid," Journal of Development Studies, Taylor & Francis Journals, vol. 50(11), pages 1510-1522, November.
    4. Chameni Nembua, Célestin & Biloa Essimi, Jean Aristide, 2013. "Who is Rich in Cameroun?
      [Who is Rich in Cameroon?]
      ," MPRA Paper 48024, University Library of Munich, Germany.
    5. Arup Bose & Satya Chakravarty & Conchita D’Ambrosio, 2014. "Richness orderings," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 12(1), pages 5-22, March.
    6. Michal Brzezinski, 2011. "Variance Estimation for Richness Measures," LWS Working papers 11, LIS Cross-National Data Center in Luxembourg.
    7. Anand, Paul & Roope, Laurence & Peichl, Andreas, 2016. "Wellbeing Evidence for the Assessment of Progress," IZA Discussion Papers 9840, Institute for the Study of Labor (IZA).
    8. BILOA ESSIMI, Jean Aristide & CHAMENI NEMBUA, Celestin, 2013. "Estimation D’Une Ligne D’Affluence : Cas Du Cameroun
      [Affluence Line Estimation: Case Of Cameroon]
      ," MPRA Paper 48095, University Library of Munich, Germany.
    9. repec:eee:energy:v:137:y:2017:i:c:p:1159-1166 is not listed on IDEAS

    More about this item

    Keywords

    richness; multidimensional measurement; top incomes; wealth; inequality;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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