A Class of Proximity-Sensitive Measures of Relative Deprivation

ZEF - Discussion Papers on Development Policy No. 243

18 Pages Posted: 2 Oct 2017

See all articles by Oded Stark

Oded Stark

University of Bonn; University of Warsaw; University of Tuebingen

Jakub Bielawski

Cracow University of Economics

Fryderyk Falniowski

Cracow University of Economics

Date Written: September 2017

Abstract

We introduce a new class of generalized measures of relative deprivation. The class takes the form of a power mean of order p . A characteristic of the class is that depending on the value of the proximity-sensitive parameter p, the class is capable of accommodating both a decreasing weight (the case of p > 1), and an increasing weight (the case of p∈0,1) ) accorded to given changes in the incomes of the individuals who are wealthier than the reference individual, depending on their proximity in the income distribution to the reference individual.

Keywords: Income distribution; Relative deprivation; Sensitivity to income transfers between wealthier individuals; Sensitivity to the proximity of changes in others’ incomes

JEL Classification: D31; D33; D63; H23

Suggested Citation

Stark, Oded and Bielawski, Jakub and Falniowski, Fryderyk, A Class of Proximity-Sensitive Measures of Relative Deprivation (September 2017). ZEF - Discussion Papers on Development Policy No. 243 , Available at SSRN: https://ssrn.com/abstract=3045161 or http://dx.doi.org/10.2139/ssrn.3045161

Oded Stark (Contact Author)

University of Bonn

Walter-Flex-Str. 3
Bonn, NRW 53113
Germany

University of Warsaw

Dluga Street 44/50
Warsaw, 00-241
Poland

University of Tuebingen

Wilhelmstr. 19
Tuebingen, Baden Wuerttemberg 72074
Germany

Jakub Bielawski

Cracow University of Economics ( email )

ul. Rakowicka 27
Krakow, 31-510
Poland

Fryderyk Falniowski

Cracow University of Economics ( email )

ul. Rakowicka 27
Krakow, 31-510
Poland

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