Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/84808 
Authors: 
Year of Publication: 
2012
Series/Report no.: 
ZEF Discussion Papers on Development Policy No. 162
Publisher: 
University of Bonn, Center for Development Research (ZEF), Bonn
Abstract: 
I study the integration of regions in the form of a merger of populations, which I interpret as a revision of people's social space and their comparison set; I illustrate the way in which a merger can aggravate social distress; and I consider policy responses. Specifically, I view the merger of populations as a merger of income vectors; I measure social distress by aggregate relative deprivation; I demonstrate that a merger increases aggregate relative deprivation; and I show that a social planner is able to reverse this increase by means of least-cost, post-merger increases in individual incomes, but is unable to counter it by relying exclusively on a self-contained income redistribution that retains individual levels of wellbeing at their pre-merger levels.
Subjects: 
Integration of regions
Merger of populations
Revision of social space
Aggregate relative deprivation
Social distress
Policy responses
JEL: 
D04
D63
F55
H53
P51
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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