This paper takes a close look at material deprivation in 27 European Union countries. Its main goal is to explore which expenditures individuals/households curtail first when facing economic difficulties. Two methodologies are applied: item response theory, a psychometric method also known as latent trait analysis, and the concept of deprivation sequence which is an extension of the notion of “order of acquisition of durable goods”. Both approaches show similar results when applied to EU Statistics on Income and Living Conditions material deprivation data. Overall, the order of curtailment found in the data does not differ substantially between EU Member states. Looking at within country variations, our analysis shows that the order of curtailment of the country as a whole is very similar to that of the various population subgroups.
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See also Guio and Marlier (2013).
As explained above (K + 1) × N comparisons will be needed, and these will be repeated !K times for a total number of iterations equal to [(K + 1) × N] × !K. In our sample (K = 13 and N = 520,000) this means 8,064,000 × 6,227,020,800 = 5.02 × 1016 iterations.
In IRT this is achieved by maximum likelihood estimation.
The deprivation score ranging from 0 to K in the DS method and the latent trait in IRT.
Drawing all the 13 curves would have made it too difficult to identify all the different necessities.
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Deutsch, J., Guio, AC., Pomati, M. et al. Material Deprivation in Europe: Which Expenditures are Curtailed First?. Soc Indic Res 120, 723–740 (2015). https://doi.org/10.1007/s11205-014-0618-6
- Durable goods
- European Union
- Item response theory
- Material deprivation
- Order of acquisition