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An Inter-temporal Relative Deprivation Index

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  • Lidia Ceriani
  • Chiara Gigliarano

Abstract

The paper provides an axiomatic characterization of a new class of relative deprivation indices. Relative deprivation is the feeling that an individual experiences when she compares herself with someone who is better off. We believe that individuals not only take care of their relative position with respect to others but also of their relative position with respect to their own past. Therefore, we introduce a history-regarding reference group, while in the traditional relative deprivation framework the reference group is only other-regarding. The new index is sensitive to the proximity of transfers in the reference groups: an individual may feel more deprived if an increase in achievements occurs close or far to her current position. The new index is illustrated with an application to EU countries. Copyright Springer Science+Business Media Dordrecht 2015

Suggested Citation

  • Lidia Ceriani & Chiara Gigliarano, 2015. "An Inter-temporal Relative Deprivation Index," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 124(2), pages 427-443, November.
    • Handle: RePEc:spr:soinre:v:124:y:2015:i:2:p:427-443
    DOI: 10.1007/s11205-014-0791-7
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    1. Walter Bossert & Satya R. Chakravarty & Conchita D’Ambrosio, 2019. "Poverty and Time," Themes in Economics, in: Satya R. Chakravarty (ed.), Poverty, Social Exclusion and Stochastic Dominance, pages 63-82, Springer.
      • BOSSERT, Walter & CHAKRAVARTY, Satya R. & D’AMBROSIO, Conchita, 2008. "Poverty and Time," Cahiers de recherche 05-2008, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
      • BOSSERT, Walter & CHAKRAVARTY, Satya R. & D’AMBROSIO, Conchita, 2008. "Poverty and Time," Cahiers de recherche 2008-05, Universite de Montreal, Departement de sciences economiques.
      • Walter Bossert & Satya R. Chakravarty & Conchita D'Ambrosio, 2010. "Poverty and Time," WIDER Working Paper Series wp-2010-074, World Institute for Development Economic Research (UNU-WIDER).
      • Walter Bossert & Satya R. Chakravarty & Conchita D’Ambrosio, 2008. "Poverty and Time," Working Papers 87, ECINEQ, Society for the Study of Economic Inequality.
    2. Satya R. Chakravarty & Conchita D’Ambrosio, 2019. "The Measurement of Social Exclusion," Themes in Economics, in: Satya R. Chakravarty (ed.), Poverty, Social Exclusion and Stochastic Dominance, pages 167-189, Springer.
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    More about this item

    Keywords

    Relative deprivation; Inter-temporal measurement; Income distribution; I32; D31; D63; D71; D81;
    All these keywords.

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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