Who Cares about Relative Deprivation?

Theories of relative deprivation predict negative welfare effects when friends and neighbors become better-off. Other theories point to likely positive benefits. The authors encompass both views within a single model, which motivates their tests using a survey for Malawi that collected data on satis...

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Main Authors:	Ravallion, Martin, Lokshin, Michael
Format:	Policy Research Working Paper
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	ABSOLUTE POVERTY AGRICULTURE CONSUMER DEMAND CONSUMPTION CHOICES CONSUMPTION EXPENDITURE DEFLATORS DEMAND BEHAVIOR DEMAND FUNCTIONS DEMOGRAPHIC COMPOSITION DEPENDENT VARIABLE DESCRIPTIVE STATISTICS DEVELOPED COUNTRIES DEVELOPING COUNTRIES DEVELOPMENT POLICIES DEVELOPMENT POLICY DIRECT UTILITY FUNCTION DURABLE GOODS ECONOMETRIC MODEL ECONOMIC GROWTH ECONOMIC THEORIES ECONOMIC WELFARE ECONOMICS LITERATURE EMPIRICAL APPROACHES EMPIRICAL EVIDENCE EMPIRICAL STUDIES EMPIRICAL WORK EXTERNALITIES HETEROGENEITY HOUSEHOLD EXPENDITURE HOUSEHOLD HEAD HOUSEHOLD INCOME HOUSEHOLD MEMBERS HOUSEHOLD SURVEY INCOME INCOME EFFECT INCOME INEQUALITY INCOME LEVEL INCOMES INDIRECT UTILITY INDIRECT UTILITY FUNCTION INDIVIDUAL WELFARE INEQUALITY INFORMAL INSURANCE INSURERS LIVING STANDARDS LIVING STANDARDS MEASUREMENT LOG INCOME LOW INCOMES MARGINAL PROPENSITY TO CONSUME MARGINAL UTILITY MEAN CONSUMPTION MEAN INCOME MEASUREMENT ERRORS MEASURING POVERTY MONETARY VALUE NATURE NEGATIVE COEFFICIENT NEGATIVE EFFECT NEGATIVE EXTERNALITIES NEGATIVE EXTERNALITY NET ROLE NON-FOOD ITEMS POLICY RESEARCH POOR AREAS POOR COUNTRIES POOR PEOPLE POPULATION CENSUS POSITIVE EFFECT POSITIVE EFFECTS POSITIVE EXTERNALITIES POSITIVE EXTERNALITY POVERTY LINE POVERTY REDUCTION PUBLIC GOOD PUBLIC GOODS REAL INCOME RELATIVE POSITION RELATIVE POVERTY RISK SHARING RURAL AREAS RURAL HOUSEHOLDS SOCIAL ASSISTANCE STRATIFIED SAMPLE SURVEY DATA TRANSITION ECONOMY URBAN AREAS UTILITY FUNCTION VARIETY WAGES WEALTH WESTERN EUROPE
Online Access:	http://documents.worldbank.org/curated/en/2005/12/6447566/cares-relative-deprivation http://hdl.handle.net/10986/8578

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recordtype	oai_dc
spelling	okr-10986-85782021-04-23T14:02:43Z Who Cares about Relative Deprivation? Ravallion, Martin Lokshin, Michael ABSOLUTE POVERTY AGRICULTURE CONSUMER DEMAND CONSUMPTION CHOICES CONSUMPTION EXPENDITURE DEFLATORS DEMAND BEHAVIOR DEMAND FUNCTIONS DEMOGRAPHIC COMPOSITION DEPENDENT VARIABLE DESCRIPTIVE STATISTICS DEVELOPED COUNTRIES DEVELOPING COUNTRIES DEVELOPMENT POLICIES DEVELOPMENT POLICY DIRECT UTILITY FUNCTION DURABLE GOODS ECONOMETRIC MODEL ECONOMIC GROWTH ECONOMIC THEORIES ECONOMIC WELFARE ECONOMICS LITERATURE EMPIRICAL APPROACHES EMPIRICAL EVIDENCE EMPIRICAL STUDIES EMPIRICAL WORK EXTERNALITIES HETEROGENEITY HOUSEHOLD EXPENDITURE HOUSEHOLD HEAD HOUSEHOLD INCOME HOUSEHOLD MEMBERS HOUSEHOLD SURVEY INCOME INCOME EFFECT INCOME INEQUALITY INCOME LEVEL INCOMES INDIRECT UTILITY INDIRECT UTILITY FUNCTION INDIVIDUAL WELFARE INEQUALITY INFORMAL INSURANCE INSURERS LIVING STANDARDS LIVING STANDARDS MEASUREMENT LOG INCOME LOW INCOMES MARGINAL PROPENSITY TO CONSUME MARGINAL UTILITY MEAN CONSUMPTION MEAN INCOME MEASUREMENT ERRORS MEASURING POVERTY MONETARY VALUE NATURE NEGATIVE COEFFICIENT NEGATIVE EFFECT NEGATIVE EXTERNALITIES NEGATIVE EXTERNALITY NET ROLE NON-FOOD ITEMS POLICY RESEARCH POOR AREAS POOR COUNTRIES POOR PEOPLE POPULATION CENSUS POSITIVE EFFECT POSITIVE EFFECTS POSITIVE EXTERNALITIES POSITIVE EXTERNALITY POVERTY LINE POVERTY REDUCTION PUBLIC GOOD PUBLIC GOODS REAL INCOME RELATIVE POSITION RELATIVE POVERTY RISK SHARING RURAL AREAS RURAL HOUSEHOLDS SOCIAL ASSISTANCE STRATIFIED SAMPLE SURVEY DATA TRANSITION ECONOMY URBAN AREAS UTILITY FUNCTION VARIETY WAGES WEALTH WESTERN EUROPE Theories of relative deprivation predict negative welfare effects when friends and neighbors become better-off. Other theories point to likely positive benefits. The authors encompass both views within a single model, which motivates their tests using a survey for Malawi that collected data on satisfaction with life, own economic welfare, and the perceived welfare of friends and neighbors. Their methods help address likely biases in past tests found in the literature. In marked contrast to research for industrial countries, the authors find that relative deprivation is generally not a concern for most of their sample, although it does appear to matter to the comparatively well off. Their results provide a welfarist explanation for the priority given to absolute poverty in poor countries. The pattern of externalities also suggests that there will be too much poverty and inequality in this economy, even judged solely from the point of view of aggregate efficiency. 2012-06-20T20:18:25Z 2012-06-20T20:18:25Z 2005-12 http://documents.worldbank.org/curated/en/2005/12/6447566/cares-relative-deprivation http://hdl.handle.net/10986/8578 English Policy Research Working Paper; No. 3782 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Africa Malawi
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	ABSOLUTE POVERTY AGRICULTURE CONSUMER DEMAND CONSUMPTION CHOICES CONSUMPTION EXPENDITURE DEFLATORS DEMAND BEHAVIOR DEMAND FUNCTIONS DEMOGRAPHIC COMPOSITION DEPENDENT VARIABLE DESCRIPTIVE STATISTICS DEVELOPED COUNTRIES DEVELOPING COUNTRIES DEVELOPMENT POLICIES DEVELOPMENT POLICY DIRECT UTILITY FUNCTION DURABLE GOODS ECONOMETRIC MODEL ECONOMIC GROWTH ECONOMIC THEORIES ECONOMIC WELFARE ECONOMICS LITERATURE EMPIRICAL APPROACHES EMPIRICAL EVIDENCE EMPIRICAL STUDIES EMPIRICAL WORK EXTERNALITIES HETEROGENEITY HOUSEHOLD EXPENDITURE HOUSEHOLD HEAD HOUSEHOLD INCOME HOUSEHOLD MEMBERS HOUSEHOLD SURVEY INCOME INCOME EFFECT INCOME INEQUALITY INCOME LEVEL INCOMES INDIRECT UTILITY INDIRECT UTILITY FUNCTION INDIVIDUAL WELFARE INEQUALITY INFORMAL INSURANCE INSURERS LIVING STANDARDS LIVING STANDARDS MEASUREMENT LOG INCOME LOW INCOMES MARGINAL PROPENSITY TO CONSUME MARGINAL UTILITY MEAN CONSUMPTION MEAN INCOME MEASUREMENT ERRORS MEASURING POVERTY MONETARY VALUE NATURE NEGATIVE COEFFICIENT NEGATIVE EFFECT NEGATIVE EXTERNALITIES NEGATIVE EXTERNALITY NET ROLE NON-FOOD ITEMS POLICY RESEARCH POOR AREAS POOR COUNTRIES POOR PEOPLE POPULATION CENSUS POSITIVE EFFECT POSITIVE EFFECTS POSITIVE EXTERNALITIES POSITIVE EXTERNALITY POVERTY LINE POVERTY REDUCTION PUBLIC GOOD PUBLIC GOODS REAL INCOME RELATIVE POSITION RELATIVE POVERTY RISK SHARING RURAL AREAS RURAL HOUSEHOLDS SOCIAL ASSISTANCE STRATIFIED SAMPLE SURVEY DATA TRANSITION ECONOMY URBAN AREAS UTILITY FUNCTION VARIETY WAGES WEALTH WESTERN EUROPE
spellingShingle	ABSOLUTE POVERTY AGRICULTURE CONSUMER DEMAND CONSUMPTION CHOICES CONSUMPTION EXPENDITURE DEFLATORS DEMAND BEHAVIOR DEMAND FUNCTIONS DEMOGRAPHIC COMPOSITION DEPENDENT VARIABLE DESCRIPTIVE STATISTICS DEVELOPED COUNTRIES DEVELOPING COUNTRIES DEVELOPMENT POLICIES DEVELOPMENT POLICY DIRECT UTILITY FUNCTION DURABLE GOODS ECONOMETRIC MODEL ECONOMIC GROWTH ECONOMIC THEORIES ECONOMIC WELFARE ECONOMICS LITERATURE EMPIRICAL APPROACHES EMPIRICAL EVIDENCE EMPIRICAL STUDIES EMPIRICAL WORK EXTERNALITIES HETEROGENEITY HOUSEHOLD EXPENDITURE HOUSEHOLD HEAD HOUSEHOLD INCOME HOUSEHOLD MEMBERS HOUSEHOLD SURVEY INCOME INCOME EFFECT INCOME INEQUALITY INCOME LEVEL INCOMES INDIRECT UTILITY INDIRECT UTILITY FUNCTION INDIVIDUAL WELFARE INEQUALITY INFORMAL INSURANCE INSURERS LIVING STANDARDS LIVING STANDARDS MEASUREMENT LOG INCOME LOW INCOMES MARGINAL PROPENSITY TO CONSUME MARGINAL UTILITY MEAN CONSUMPTION MEAN INCOME MEASUREMENT ERRORS MEASURING POVERTY MONETARY VALUE NATURE NEGATIVE COEFFICIENT NEGATIVE EFFECT NEGATIVE EXTERNALITIES NEGATIVE EXTERNALITY NET ROLE NON-FOOD ITEMS POLICY RESEARCH POOR AREAS POOR COUNTRIES POOR PEOPLE POPULATION CENSUS POSITIVE EFFECT POSITIVE EFFECTS POSITIVE EXTERNALITIES POSITIVE EXTERNALITY POVERTY LINE POVERTY REDUCTION PUBLIC GOOD PUBLIC GOODS REAL INCOME RELATIVE POSITION RELATIVE POVERTY RISK SHARING RURAL AREAS RURAL HOUSEHOLDS SOCIAL ASSISTANCE STRATIFIED SAMPLE SURVEY DATA TRANSITION ECONOMY URBAN AREAS UTILITY FUNCTION VARIETY WAGES WEALTH WESTERN EUROPE Ravallion, Martin Lokshin, Michael Who Cares about Relative Deprivation?
geographic_facet	Africa Malawi
relation	Policy Research Working Paper; No. 3782
description	Theories of relative deprivation predict negative welfare effects when friends and neighbors become better-off. Other theories point to likely positive benefits. The authors encompass both views within a single model, which motivates their tests using a survey for Malawi that collected data on satisfaction with life, own economic welfare, and the perceived welfare of friends and neighbors. Their methods help address likely biases in past tests found in the literature. In marked contrast to research for industrial countries, the authors find that relative deprivation is generally not a concern for most of their sample, although it does appear to matter to the comparatively well off. Their results provide a welfarist explanation for the priority given to absolute poverty in poor countries. The pattern of externalities also suggests that there will be too much poverty and inequality in this economy, even judged solely from the point of view of aggregate efficiency.
format	Publications & Research :: Policy Research Working Paper
author	Ravallion, Martin Lokshin, Michael
author_facet	Ravallion, Martin Lokshin, Michael
author_sort	Ravallion, Martin
title	Who Cares about Relative Deprivation?
title_short	Who Cares about Relative Deprivation?
title_full	Who Cares about Relative Deprivation?
title_fullStr	Who Cares about Relative Deprivation?
title_full_unstemmed	Who Cares about Relative Deprivation?
title_sort	who cares about relative deprivation?
publisher	World Bank, Washington, DC
publishDate	2012
url	http://documents.worldbank.org/curated/en/2005/12/6447566/cares-relative-deprivation http://hdl.handle.net/10986/8578
_version_	1764408030881906688

Who Cares about Relative Deprivation?

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