2012
DOI: 10.1111/j.1468-0335.2012.00931.x
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Inequality Adjusted Income Growth

Abstract: We introduce and characterize a new measure of aggregate income growth that allows us to give more weight to individuals with lower individual income growth. Our measure includes several important measures of directional mobility encountered in the literature. The empirical application compares the measure of income growth between the USA and Germany, and finds that giving more weight to individuals with lower income growth reverses the ranking.

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Cited by 13 publications
(9 citation statements)
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“…A similar axiom has been used by Bossert (1990) and Demuynck and Van de gaer (2012). The combination of the previous axioms results in the following Lemma.…”
Section: From Individual To Aggregate Growthmentioning
confidence: 90%
See 1 more Smart Citation
“…A similar axiom has been used by Bossert (1990) and Demuynck and Van de gaer (2012). The combination of the previous axioms results in the following Lemma.…”
Section: From Individual To Aggregate Growthmentioning
confidence: 90%
“…The latter guarantees that we do not treat the growth values of two individuals with the same initial income level differently. Next, we impose the counterparts of the structural axioms used by Bossert (1990) and Demuynck and Van de gaer (2012) on the present domain, the domain of initial income level based averaged growth, ranked on the basis of initial income. In particular, we impose Relative and Translation Invariance (RI and TI), requiring that the aggregate growth ordering of two growth processes is unaffected when, in both processes, all individuals' growth values are multiplied by the same constant or when, in both growth processes, the same constant is added to all individuals' growth values, respectively.…”
Section: Introductionmentioning
confidence: 99%
“…There are two ways in which this dilemma may be mitigated. One is the standard "inequality adjusted" growth rate and directional mobility indices 1 (Demuynck and Van de Gaer, 2011) and the other, the concept that is pursued here. The standard literature reveals some sort of additivity of individual positions (or decomposability of the aggregate into individual parts).…”
Section: Introductionmentioning
confidence: 99%
“…Examples used there also showed that these agent-relative views might widely differ from each 1 There is a long list of literature. For details, see Demuynck and Van de Gaer (2011). 2 A very similar approach is the "spatial partial approach" that has been in use in the Public Facility Location models (Nijkamp, 2000).…”
Section: Introductionmentioning
confidence: 99%
“…See alsoBhattacharya and Mazumder (2011), Corak, Lindquist, andMazumder (2014),Demuynck and Van de gaer (2012), and Schluter and Van de gaer (2011).…”
mentioning
confidence: 99%