Two classes of generalized deprivation indexes

Working Paper 2011-202

Abstract

The paper uses two particular formulations of the Gini index to derive two different relative deprivation measures. We then generalize the formulation of these measures following Donaldson and Weymark (1980) and Berrebi and Silber (1985) and show how these generalizations can be considered as two different classes of indexes. An example illustrates how the use of the two classes of indexes can lead to different results in empirical applications.

Authors: Paolo Verme.