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Measuring Plutonomy Intensity Under Data Deprivation: An Axiomatic Index

Author

Listed:
  • Paul Makdissi

    (Department of Economics, University of Ottawa, Canada)

  • Myra Yazbeck

    (Department of Economics, University of Ottawa, Canada)

Abstract

Measuring top-income inequality typically requires household surveys merged with tax records, or Pareto tails fitted to survey data, resources unavailable across much of the developing world. In this note, we propose a simple plutonomy intensity index estimable from alternative sources. Three axioms, within-group irrelevance, joint income scaling invariance, and plutocratic income monotonicity, characterize the class of indices ranking distributions exactly as the plutocrat-to-ordinary mean income ratio does. The index also satisfies anonymity, population invariance, and a restricted transfer principle. We illustrate its use in the Arab region, approximating it using the Forbes Billionaires List and World Bank macroeconomic data.

Suggested Citation

  • Paul Makdissi & Myra Yazbeck, 2026. "Measuring Plutonomy Intensity Under Data Deprivation: An Axiomatic Index," Working Papers 2607E, University of Ottawa, Department of Economics.
    • Handle: RePEc:ott:wpaper:2607e
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    File URL: http://hdl.handle.net/10393/52022
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    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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