[en] We characterize a new class of individual measures of economic insecurity in a setting where there is a single relevant variable that can be interpreted as income or consumption. Insecurity is intended to capture the difficulties faced by an economic agent when confronted with adverse events. We work with an intertemporal model and base our measures on the changes in the variable when moving from one period to the next. Our approach is axiomatic and differs from the existing literature in two respects. First, we adopt a relative (scale-invariant) concept of insecurity and, second, we restrict attention to a relatively small set of requirements that we consider plausible and intuitively appealing. As a result, we identify a large class of measures that can be thought of as providing a tool box to empirical researchers who can select those members of our class that they consider suitable for the application in question. In addition, we present a dominance criterion based on our new insecurity measures.
Disciplines :
Social economics
Author, co-author :
Bossert, Walter; UdeM - University of Montreal [CA] > Department of Economics
D'AMBROSIO, Conchita ; University of Luxembourg > Faculty of Humanities, Education and Social Sciences (FHSE) > Department of Behavioural and Cognitive Sciences (DBCS) > Health and Behaviour
External co-authors :
yes
Language :
English
Title :
Relative measures of economic insecurity
Publication date :
2024
Journal title :
Social Choice and Welfare
ISSN :
0176-1714
eISSN :
1432-217X
Publisher :
Springer, Germany
Volume :
62
Pages :
571-581
Peer reviewed :
Peer Reviewed verified by ORBi
FnR Project :
FNR12677653 - Financial Strain And Economic Instability: Effects On Wellbeing And Behaviour Over The Life Course, 2018 (01/09/2019-31/08/2022) - Conchita D'ambrosio
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