Multidimensional affluence: theory and applications to Germany and the US |
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| Authors: | Andreas Peichl |
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| Institution: | 1. Institute for the Study of Labor (IZA), D-53113 Bonn, Germany;2. Department of Economics, University of Cologne, D-50923 Cologne, Germany;3. Institute for Social and Economic Research (ISER), University of Essex, Essex CO4 3SQ, UK;4. CESifo, D-81679 Munich, Germany |
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| Abstract: | This article suggests multidimensional affluence measures for the top of the distribution. In contrast to commonly used top income shares, they allow the analysis of the extent, intensity and breadth of affluence in several dimensions within a common framework. We illustrate this by analysing the role of income and wealth as dimensions of multidimensional well-being in Germany and the US in 2007 as well as for the US over the period 1989–2007. We find distinct country differences with the country ranking depending on the measure. While in Germany wealth predominantly contributes to the intensity of affluence, income is more important in the US. |
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| Keywords: | top incomes multidimensional measurement richness wealth in-equality |
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