GDP and Beyond: An Implementation of Welfare Considerations to the Distribution of Earnings in Italy

31 Pages Posted: 26 Oct 2011

See all articles by Paolo Liberati

Paolo Liberati

University Roma Tre - Department of Economics

Shlomo Yitzhaki

Hebrew University of Jerusalem - Department of Economics; National Bureau of Economic Research (NBER)

Date Written: October 26, 2011

Abstract

The aim of this paper is to implement distributional considerations in comparing the economic well-being of individuals over time and living in different regions in Italy. In this sense, the purpose is to implement the recommendations of the Stiglitz’s (2009) report concerning augmenting national accounts by distributional considerations in an easy to implement environment. In order to explore this topic we have made recourse to multiple tools. In the first part of the paper we have looked for second-degree necessary and sufficient conditions for welfare dominance using Absolute Lorenz Curves (ALC) from both a national and regional perspective. In the second part of the paper, we have made recourse to a standard Lorenz Curve (LC) analysis to neutralize differences in average incomes. The third part of the paper introduces the analysis of Gini (ANOGI). We found that differences among subpopulation distributions accentuates over time and that when South and Islands are used as a reference group, North-West and North-East form two relatively more distinct groups.

Suggested Citation

Liberati, Paolo and Yitzhaki, Shlomo, GDP and Beyond: An Implementation of Welfare Considerations to the Distribution of Earnings in Italy (October 26, 2011). Available at SSRN: https://ssrn.com/abstract=1949839 or http://dx.doi.org/10.2139/ssrn.1949839

Paolo Liberati

University Roma Tre - Department of Economics ( email )

Via Silvio D'Amico 77
ROMA, 00145
Italy

Shlomo Yitzhaki (Contact Author)

Hebrew University of Jerusalem - Department of Economics ( email )

Mount Scopus
Jerusalem, 91905
Israel
+972 2 659 2201 (Phone)
+972 2 652 2319 (Fax)

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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