IDEAS home Printed from https://ideas.repec.org/p/nsr/escoed/escoe-dp-2021-01.html

Deflation of Distributional National Accounts

Author

Listed:
  • Martin Weale

  • Andrew Aitken

Abstract

In this note we discuss suitable deflators for distributional national accounts. Measures such as the top 10 per cent income share, or the 90/10 income ratio do not require deflation. Other measures such as the income or income growth of particular percentiles of the income distribution do require deflation. We argue that democratic deflators are generally more appropriate than plutocratic deflators, and the ONS now produces democratic price indices for equivalised income quintiles and deciles, in addition to the aggregate democratic CPIH.

Suggested Citation

  • Martin Weale & Andrew Aitken, 2021. "Deflation of Distributional National Accounts," Economic Statistics Centre of Excellence (ESCoE) Discussion Papers (2017-2023 papers hosted by The National Institute of Economic and Social Research) ESCoE DP-2021-01, Economic Statistics Centre of Excellence (ESCoE).
    • Handle: RePEc:nsr:escoed:escoe-dp-2021-01
    as

    Download full text from publisher

    File URL: https://escoe-website.s3.amazonaws.com/wp-content/uploads/2021/01/11104233/ESCoE-DP-2021-01.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jorrit Zwijnenburg & Sophie Bournot & Federico Giovannelli, 2017. "Expert Group on Disparities in a National Accounts Framework: Results from the 2015 Exercise," OECD Statistics Working Papers 2016/10, OECD Publishing.
    2. Peter ven de Ven & Anne Harrison & Barbara Fraumeni & Dale W. Jorgenson & Paul Schreyer, 2017. "Measuring Individual Economic Well-Being and Social Welfare within the Framework of the System of National Accounts," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 63, pages 460-477, December.
    3. Maryse Fesseau & Maria Liviana Mattonetti, 2013. "Distributional Measures Across Household Groups in a National Accounts Framework: Results from an Experimental Cross-country Exercise on Household Income, Consumption and Saving," OECD Statistics Working Papers 2013/4, OECD Publishing.
    4. Andrew Aitken & Martin Weale, 2020. "A Democratic Measure of Household Income Growth: Theory and Application to the United Kingdom," Economica, London School of Economics and Political Science, vol. 87(347), pages 589-610, July.
    5. Layard, R. & Mayraz, G. & Nickell, S., 2008. "The marginal utility of income," Journal of Public Economics, Elsevier, vol. 92(8-9), pages 1846-1857, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nora Lustig, 2019. "The “Missing Rich” in Household Surveys: Causes and Correction Approaches," Commitment to Equity (CEQ) Working Paper Series 75, Tulane University, Department of Economics.
    2. Paul Schreyer, 2021. "Framing Measurement Beyond GDP," CEPA Working Papers Series WP172021, School of Economics, University of Queensland, Australia.
    3. Andrew Aitken & Martin Weale, 2020. "A Democratic Measure of Household Income Growth: Theory and Application to the United Kingdom," Economica, London School of Economics and Political Science, vol. 87(347), pages 589-610, July.
    4. Chung Choe & SeEun Jung & Ronald L. Oaxaca, 2020. "Identification and decompositions in probit and logit models," Empirical Economics, Springer, vol. 59(3), pages 1479-1492, September.
    5. Proto, Eugenio & Rustichini, Aldo, "undated". "Life Satisfaction, Household Income and Personality Traits," Economic Research Papers 270640, University of Warwick - Department of Economics.
    6. De Neve, Jan-Emmanuel & Oswald, Andrew J., 2012. "Estimating the influence of life satisfaction and positive affect on later income using sibling fixed-effects," LSE Research Online Documents on Economics 51523, London School of Economics and Political Science, LSE Library.
    7. Crispin H. V. Cooper, 2020. "Quantitative Models of Well-Being to Inform Policy: Problems and Opportunities," Sustainability, MDPI, vol. 12(8), pages 1-13, April.
    8. Daniel Kuehnle & Christoph Wunder, 2016. "Using the Life Satisfaction Approach to Value Daylight Savings Time Transitions: Evidence from Britain and Germany," Journal of Happiness Studies, Springer, vol. 17(6), pages 2293-2323, December.
    9. Wei Chen, 2019. "Income and Effort: An Instrumental Variables Approach," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 47(4), pages 485-497, December.
    10. Savatore Puglisi & Ionuț Virgil Șerban, 2019. "Beyond Gdp: Which Options To Better Represent Modern Socio-Economic Progress?," Sociology and Social Work Review, International Society for projects in Education and Research, vol. 3(1), pages 17-32, June.
    11. Tofallis, Chris, 2020. "Which formula for national happiness?," Socio-Economic Planning Sciences, Elsevier, vol. 70(C).
    12. Carter, Steven & McBride, Michael, 2013. "Experienced utility versus decision utility: Putting the ‘S’ in satisfaction," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 42(C), pages 13-23.
    13. Ehrmann, Michael & Tzamourani, Panagiota, 2012. "Memories of high inflation," European Journal of Political Economy, Elsevier, vol. 28(2), pages 174-191.
    14. Zunian Luo, 2022. "Cap or No Cap? What Can Governments Do to Promote EV Sales?," Papers 2212.08137, arXiv.org.
    15. Shaun Costa, 2025. "Global lifespan and welfare inequality over the last five decades from a prioritarian perspective," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 65(2), pages 487-512, September.
    16. Martin Binder, 2016. "Revisiting Cheerful Jane and Miserable John: the impact of income, good health, social contacts and education declines with increasing subjective well-being," Applied Economics Letters, Taylor & Francis Journals, vol. 23(8), pages 544-553, May.
    17. Richard Layard, 2010. "The Greatest Happiness Principle: Its Time Has Come," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 8(4), pages 26-31, 01.
    18. Stefan Ederer & Stefan Humer & Stefan Jestl & Emanuel List, 2020. "Distributional National Accounts (DINA) with Household Survey Data: Methodology and Results for European Countries," wiiw Working Papers 180, The Vienna Institute for International Economic Studies, wiiw.
    19. Antràs, Pol & de Gortari, Alonso & Itskhoki, Oleg, 2017. "Globalization, inequality and welfare," Journal of International Economics, Elsevier, vol. 108(C), pages 387-412.
    20. Hjertstrand, Per, 2025. "The marginal utility of income and homogeneous demand systems," Journal of Economic Behavior & Organization, Elsevier, vol. 229(C).

    More about this item

    Keywords

    ;
    ;

    JEL classification:

    • D30 - Microeconomics - - Distribution - - - General
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nsr:escoed:escoe-dp-2021-01. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ESCoE Centre Manager (email available below). General contact details of provider: https://edirc.repec.org/data/escoeuk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.