Evaluating Patterns of Income Growth when Status Matters: A Robust Approach. (7th November 2016)

• Record Type: Journal Article
• Authors: Palmisano, Flaviana
• Is Part Of: Review of income and wealth. Series 64:Number 1(2018)
• Page Start: 147
• Page End: 169
• Publication Date: 2016-11-07
• Subjects: D31 -- D63 -- D71; growth -- income mobility -- inequality -- social welfare -- pro‐poorness; National income -- Accounting -- Periodicals; 332.05
• DOI: 10.1111/roiw.12272
• Languages: English
• ISSNs: 0034-6586

Abstract

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 are used to identify them on the basis 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 have taken place in the past decade in Australia, Germany, Korea, Switzerland, and the U.S.