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Evaluating patterns of income growth when status matters: a robust approach

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  • Flaviana Palmisano

    (Universit\'{e} du Luxembourg, Luxembourg)

Abstract

This paper addresses the problem of ranking growth episodes from a microeconomic perspective. While most of the existing criteria, framed in the pro-poor growth tradition, are either based on anonymous individuals or use to identify them on the base of their status in the initial period, this paper proposes new criteria to evaluate growth, which are robust to the choice of the reference period used to identify individuals. Suitable dominance conditions that can be used to rank alternative growth processes are derived by means of an axiomatic approach. Moreover, the theoretical results are used to rank the different growth episodes that took place in the last decade in Australia, Germany, Korea, Switzerland, and US.

Suggested Citation

  • Flaviana Palmisano, 2015. "Evaluating patterns of income growth when status matters: a robust approach," Working Papers 375, ECINEQ, Society for the Study of Economic Inequality.
    • Handle: RePEc:inq:inqwps:ecineq2015-375
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    Cited by:

    1. Stephan Klasen & Maria C. Lo Bue & Vincenzo Prete, 2020. "What's behind pro-poor growth?: The role of shocks and measurement error," WIDER Working Paper Series wp-2020-16, World Institute for Development Economic Research (UNU-WIDER).
    2. Flaviana Palmisano & Ida Petrillo, 2022. "A general rank‐dependent approach for distributional comparisons," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 24(2), pages 380-409, April.
    3. Maria C. Lo Bue & Flaviana Palmisano, 2020. "The Individual Poverty Incidence of Growth," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 82(6), pages 1295-1321, December.
    4. Olivier BARGAIN & Maria C. LO BUE & Flaviana PALMISANO, 2022. "Dynastic Measures of Intergenerational Mobility," Bordeaux Economics Working Papers 2022-21, Bordeaux School of Economics (BSE).
    5. Michael Savage, 2016. "Poorest Made Poorer? Decomposing income losses at the bottom of the income distribution during the Great Recession," Papers WP528, Economic and Social Research Institute (ESRI).
    6. Flaviana Palmisano & Ida Petrillo, 2021. "A general rank-dependent approach for distributional comparisons," Working Papers 567, ECINEQ, Society for the Study of Economic Inequality.

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    More about this item

    Keywords

    growth; income mobility; inequality; social welfare; pro-poorness.;
    All these keywords.

    JEL classification:

    • 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

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