This paper proposes a class of literacy measures that takes into account the externality generated by the presence of literates in the household. It is claimed that such externality is increasing in the number of literates in the household, has characteristics of rivalry in consumption, and therefore is a function of the distribution of literates and illiterates in the household. The measure is given a full axiomatic characterization, and it is shown that its use may reverse the ranking of geographical areas obtained by using other literacy measures.
Focus areas: Economics of antitrust, development economics
Paola Valenti is an economist with expertise in applied microeconomics, applied econometrics, and economics of antitrust and intellectual property. She has expertise in industries such as electronics, pharmaceuticals, medical devices, industrial chemicals, consumer products, food, and computer hardware and software. Valenti previously served as a consultant at NERA Economic Consulting, developing economic research and quantitative analysis. She also worked as a consultant for the World Bank's Human Development Network and Social Protection Group.Valenti holds laurea and Dottorato di Recerca degrees in economics from the University of Rome "La Sapienza," an MSc from CORIPE Piemonte, and a PhD from Cornell University.