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On the Measurement of Indignation

Author

Listed:
  • Paul Makdissi

    (Department of Economics, University of Ottawa, 120 University St., Ottawa,Ontario)

  • Myra Yazbeck

    (CIRPÉE and Department of Epidemiology Biostatistics and Occupational Health, McGill University, Montreal, Canada,)

Abstract

Recently, a lot of attention is given to income variations occurring at the top of the income distribution. “What happens to the top 1%?” is a question of crucial importance on the political level (Occupy Wall Street Movement) as well as on income inequality measurement level. Despite this increased interest, there is no rigorous measurement framework available in the literature for the measurement of “indignation”. To fill this gap, this paper proposes a simple framework for the measurement of indignation. It exposes the ethical principles underlying an indignation index and develops restricted positional dominance conditions that produce robust orderings of indignation between income distributions. It also proposes a parametric class of indignation indices that may be used to produce complete orderings when the restricted positional dominance tests do not lead to satisfactory orderings. Finally, the paper offers a brief empirical illustration using the World Top Incomes Database.

Suggested Citation

  • Paul Makdissi & Myra Yazbeck, 2012. "On the Measurement of Indignation," Working Papers 1213E, University of Ottawa, Department of Economics.
    • Handle: RePEc:ott:wpaper:1213e
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    References listed on IDEAS

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    11. Stefan Bach & Giacomo Corneo & Viktor Steiner, 2009. "From Bottom To Top: The Entire Income Distribution In Germany, 1992–2003," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 55(2), pages 303-330, June.
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    Cited by:

    1. Paul Makdissi & Myra Yazbeck, 2015. "On the measurement of plutonomy," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 44(4), pages 703-717, April.

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    More about this item

    Keywords

    Indignation; Inequality; Positional Dominance; Lorenz Curve;
    All these keywords.

    JEL classification:

    • I39 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Other

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    This paper has been announced in the following NEP Reports:

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