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Reference Groups and Individual Deprivation

Author

Listed:
  • 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 13-2004, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
    • Handle: RePEc:mtl:montec:13-2004
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    JEL classification:

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

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