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Dynamic Measures of Individual Deprivation

  • BOSSERT, Walter
  • D'AMBROSIO, Conchita

We introduce and axiomatize a one-parameter class of individual deprivation measures. Motivated by a suggestion of Runciman, we modify Yitzhaki’s index by multiplying it by a function that is interpreted as measuring the part of deprivation generated by an agent’s observation that others in its reference group move on to a higher level of income than itself. The parameter reflects the relative weight given to these dynamic considerations, and the standard Yitzhaki index is obtained as a special case. In addition, we characterize more general classes of measures that pay attention to this important dynamic aspect of deprivation.

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File URL: http://hdl.handle.net/1866/539
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Paper provided by Universite de Montreal, Departement de sciences economiques in its series Cahiers de recherche with number 2005-10.

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Length: 15 pages
Date of creation: 2005
Date of revision:
Handle: RePEc:mtl:montde:2005-10
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  1. Jean-Yves Duclos, 2000. "Gini Indices and the Redistribution of Income," International Tax and Public Finance, Springer, vol. 7(2), pages 141-162, March.
  2. WEYMARK, John A., . "Generalized Gini inequality indices," CORE Discussion Papers RP -453, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  3. Sen, Amartya K, 1976. "Poverty: An Ordinal Approach to Measurement," Econometrica, Econometric Society, vol. 44(2), pages 219-31, March.
  4. Yitzhaki, Shlomo, 1979. "Relative Deprivation and the Gini Coefficient," The Quarterly Journal of Economics, MIT Press, vol. 93(2), pages 321-24, May.
  5. Hey, John D & Lambert, Peter J, 1980. "Relative Deprivation and the Gini Coefficient: Comment," The Quarterly Journal of Economics, MIT Press, vol. 95(3), pages 567-73, November.
  6. Kakwani, Nanak, 1984. "The Relative Deprivation Curve and Its Applications: Reply," Journal of Business & Economic Statistics, American Statistical Association, vol. 2(4), pages 400-405, October.
  7. Bossert, Walter, 1990. "An axiomatization of the single-series Ginis," Journal of Economic Theory, Elsevier, vol. 50(1), pages 82-92, February.
  8. Satya R. Chakravarty & Patrick Moyes, 2003. "Individual welfare, social deprivation and income taxation," Economic Theory, Springer, vol. 21(4), pages 843-869, 06.
  9. Paul, Satya, 1991. "An index of relative deprivation," Economics Letters, Elsevier, vol. 36(3), pages 337-341.
  10. Conchita D'Ambrosio & Joachim R. Frick, 2004. "Subjective Well-Being and Relative Deprivation: An Empirical Link," Discussion Papers of DIW Berlin 449, DIW Berlin, German Institute for Economic Research.
  11. Donaldson, David & Weymark, John A., 1980. "A single-parameter generalization of the Gini indices of inequality," Journal of Economic Theory, Elsevier, vol. 22(1), pages 67-86, February.
  12. Kakwani, Nanak, 1984. "The Relative Deprivation Curve and Its Applications," Journal of Business & Economic Statistics, American Statistical Association, vol. 2(4), pages 384-94, October.
  13. Bossert, Walter & D'Ambrosio, Conchita, 2006. "Reference groups and individual deprivation," Economics Letters, Elsevier, vol. 90(3), pages 421-426, March.
  14. Chakravarty, S. R. & Chakraborty, A. B., 1984. "On indices of relative deprivation," Economics Letters, Elsevier, vol. 14(2-3), pages 283-287.
  15. Rosen, Sherwin, 1984. "The Relative Deprivation Curve and Its Applications," Journal of Business & Economic Statistics, American Statistical Association, vol. 2(4), pages 395-97, October.
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