Welfare Comparisons: Sequential Procedures for Heterogeneous Populations
AbstractSome analysts use sequential dominance criteria, and others use equivalence scales in combination with non-sequential dominance tests, to make welfare comparisons of joint distributions of income and needs. In this paper we present a new sequential procedure which copes with situations in which sequential dominance fails. We also demonstrate that the recommendations deriving from the sequential approach are valid for distributions of equivalent income whatever equivalence scale the analyst might adopt. Thus, the paper marries together the sequential and equivalizing approaches, seen as alternatives in much previous literature. All results are specified in forms that allow for demographic differences in the populations being compared. Copyright 2002 by The London School of Economics and Political Science
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Bibliographic InfoArticle provided by London School of Economics and Political Science in its journal Economica.
Volume (Year): 69 (2002)
Issue (Month): 276 (November)
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Other versions of this item:
- Peter Lambert & Xavi Ramos, 2001. "Welfare Comparisons: Sequential Procedures for Heterogeneous Population," CESifo Working Paper Series 519, CESifo Group Munich.
- Peter J. Lambert & Xavier Ramos, 2001. "Welfare comparisons: sequential procedures for heterogenous populations," Working Papers wp0114, Department of Applied Economics at Universitat Autonoma of Barcelona.
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- I31 - Health, Education, and Welfare - - Welfare and Poverty - - - General Welfare
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