The Distributional Incidence of Growth: A Social Welfare Approach. (6th January 2014)

• Record Type: Journal Article
• Authors: Palmisano, Flaviana; Peragine, Vito
• Is Part Of: Review of income and wealth. Series 61:Number 3(2015:Sep.)
• Page Start: 440
• Page End: 464
• Publication Date: 2014-01-06
• Subjects: National income -- Accounting -- Periodicals; 332.05
• DOI: 10.1111/roiw.12109
• Languages: English
• ISSNs: 0034-6586

Abstract

<abstract abstract-type="main"> <title> <x xml:space="preserve">Abstract</x> </title> <p>This paper provides a normative framework for the assessment of the distributional incidence of growth. By removing the anonymity axiom, such framework is able to evaluate the individual income changes over time and the reshuffling of individuals along the income distribution that are determined by the pattern of income growth. We adopt a rank dependent social welfare function expressed in terms of initial rank and individual income change and we obtain partial and complete dominance conditions over different growth paths. These dominance conditions account for the different components determining the overall impact of growth, that is the size of growth and its vertical and horizontal incidence. We then provide an empirical application for Italy: this analysis shows the distributional impact of the recent economic crisis suffered by the Italian populaltion.</p> </abstract>