On procedures for measuring deprivation and living standards of societies in a multi-attribute framework

Abstract

When a society's overall deprivation or living standard is assessed in a multi-attribute framework, the following procedure is often used. First, for each attribute, a summary index is constructed to reflect a society's performance in relation to this attribute. Then, an indicator of the overall performance of the society in terms of all the attributes together is constructed. This paper discusses a difficulty associated with this procedure. We show that the difficulty lies in its inability to reconcile two highly attractive ethical principles - the first reflecting a requirement of treating individuals symmetrically and the second reflecting a requirement for equity-sensitivity. This problem implies that this widely-used procedure must lead to possibly untenable conclusions, and that it is necessary to adopt alternative procedures. The alternative procedure must permit describing a society's overall deprivation or living standard as an aggregate of the comprehensive deprivations or living standards experienced by the individuals in the society. Working Paper 08-0