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Reference Groups and Individual Deprivation

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  • BOSSERT, Walter
  • D'AMBROSIO, Conchita

Abstract

We provide an axiomatization of Yitzhaki’s index of individual deprivation. Our result differs from an earlier characterization due to Ebert and Moyes in the way the reference group of an individual is represented in the model. Ebert and Moyes require the index to be defined for all logically possible reference groups, whereas we employ the standard definition of the reference group as the set of all agents in a society. As a consequence of this modification, some of the axioms used by Ebert and Moyes can no longer be applied and we provide alternative formulations.

Suggested Citation

  • BOSSERT, Walter & D'AMBROSIO, Conchita, 2004. "Reference Groups and Individual Deprivation," Cahiers de recherche 2004-10, Universite de Montreal, Departement de sciences economiques.
  • Handle: RePEc:mtl:montde:2004-10
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    File URL: http://hdl.handle.net/1866/525
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    References listed on IDEAS

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    1. Sen, Amartya K, 1976. "Poverty: An Ordinal Approach to Measurement," Econometrica, Econometric Society, vol. 44(2), pages 219-231, March.
    2. Shlomo Yitzhaki, 1979. "Relative Deprivation and the Gini Coefficient," The Quarterly Journal of Economics, Oxford University Press, vol. 93(2), pages 321-324.
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    Cited by:

    1. Oded Stark & Ewa Zawojska, 2016. "Will a government find it financially easier to neutralize a looming protest if more groups are involved?," Constitutional Political Economy, Springer, vol. 27(4), pages 435-450, December.
    2. Bossert, Walter & D’Ambrosio, Conchita, 2014. "Proximity-sensitive individual deprivation measures," Economics Letters, Elsevier, vol. 122(2), pages 125-128.
    3. Stark, Oded & Falniowski, Fryderyk & Jakubek, Marcin, 2016. "Consensus income distribution," Discussion Papers 250120, University of Bonn, Center for Development Research (ZEF).
    4. Oded Stark & Franz Rendl & Marcin Jakubek, 2012. "The merger of populations, the incidence of marriages, and aggregate unhappiness," Journal of Evolutionary Economics, Springer, vol. 22(2), pages 331-344, April.
    5. Oded Stark, 2010. "Looking at the Integration of Nations through the Lens of the Merger of Populations: Preliminary Superadditivity and Impossibility Results," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 146(IV), pages 661-675, December.
    6. Stark, Oded, 2015. "Comparing the Global and Merged with the Local and Separate: On a Downside to the Integration of Regions and Nations," East Asian Economic Review, Korea Institute for International Economic Policy, vol. 19(4), pages 325-355, December.
    7. Ozan Eksi & Neslihan Kaya, 2017. "Life Satisfaction and Keeping Up with Other Countries," Journal of Happiness Studies, Springer, pages 199-228.
    8. Sorger, Gerhard & Stark, Oded, 2013. "Income redistribution going awry: The reversal power of the concern for relative deprivation," Journal of Economic Behavior & Organization, Elsevier, vol. 86(C), pages 1-9.
    9. Guoqiang Ren & Xiuli Pan, 2016. "An Individual Relative Deprivation Index and Its Curve Considering Income Scope," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 126(3), pages 935-953, April.
    10. Fabio Sabatini & Francesco Sarracino, 2015. "Keeping up with the e-Joneses: Do online social networks raise social comparisons?," Papers 1507.08863, arXiv.org.
    11. Oded Stark & Walter Hyll, 2011. "On the Economic Architecture of the Workplace: Repercussions of Social Comparisons among Heterogeneous Workers," Journal of Labor Economics, University of Chicago Press, vol. 29(2), pages 349-375.
    12. Jacques Silber & Paolo Verme, 2009. "Distributional change, reference groups and the measurement of relative deprivation," Working Papers 136, ECINEQ, Society for the Study of Economic Inequality.
    13. Oded Stark & Walter Hyll & Doris Behrens, 2010. "Gauging the potential for social unrest," Public Choice, Springer, vol. 143(1), pages 229-236, April.
    14. Aleksynska, Mariya, 2011. "Relative deprivation, relative satisfaction, and attitudes towards immigrants: Evidence from Ukraine," Economic Systems, Elsevier, vol. 35(2), pages 189-207, June.
    15. Walter Bossert & Conchita D’Ambrosio, 2007. "Dynamic Measures of Individual Deprivation," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 28(1), pages 77-88, January.
    16. Paolo Verme, 2010. "Relative labour deprivation and urban migration in Turkey," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 8(4), pages 391-408, December.
    17. Marek Kośny, 2012. "Relative Income Changes and an Identification of Growth Pattern," Working Papers 268, ECINEQ, Society for the Study of Economic Inequality.
    18. Luna Bellani, 2013. "Multidimensional indices of deprivation: the introduction of reference groups weights," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 11(4), pages 495-515, December.
    19. Stark, Oded, 2013. "Stressful Integration," European Economic Review, Elsevier, vol. 63(C), pages 1-9.
    20. Stéphane Mussard & Patrick Richard, 2012. "Linking Yitzhaki's and Dagum's Gini decompositions," Applied Economics, Taylor & Francis Journals, vol. 44(23), pages 2997-3010, August.
    21. Edward Anderson & Lucio Esposito, 2014. "On the joint evaluation of absolute and relative deprivation," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 12(3), pages 411-428, September.
    22. Silber, Jacques & Verme, Paolo, 2012. "Relative deprivation, reference groups and the assessment of standard of living," Economic Systems, Elsevier, vol. 36(1), pages 31-45.
    23. Frank A Cowell & Udo Ebert, 2006. "Inequality and Envy," STICERD - Distributional Analysis Research Programme Papers 88, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
    24. Stéphane Mussard, 2007. "Between-Group Pigou Dalton Transfers," Cahiers de recherche 07-06, Departement d'Economique de l'École de gestion à l'Université de Sherbrooke.
    25. Azomahou, Theophile & Diene, Mbaye, 2012. "Income polarization and innovation: Evidence from African economies," MERIT Working Papers 048, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

    More about this item

    Keywords

    Income distribution; deivation; equity.;

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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