Unit-Consistent Decomposable Inequality Measures
AbstractThis paper introduces a new axiom-the unit consistency axiom-into inequality measurement. This new axiom requires the ordinal inequality rankings (rather than the cardinal indices) to be unaffected when incomes are expressed in different units. I argue that unit consistency is an indispensable axiom for the measurement of income inequality. When unit consistency is combined with decomposability, I show that the unit-consistent decomposable class of inequality measures is a two-parameter extension of the one-parameter generalized entropy class. The extended class accommodates a variety of value judgments and includes different types of inequality measures. Copyright (c) The London School of Economics and Political Science 2006.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by London School of Economics and Political Science in its journal Economica.
Volume (Year): 74 (2007)
Issue (Month): 293 (02)
Contact details of provider:
Postal: Houghton Street, London WC2A 2AE
Phone: +44 (020) 7405 7686
Web page: http://www.blackwellpublishing.com/journal.asp?ref=0013-0427
More information through EDIRC
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- de la Vega, Casilda Lasso & Seidl, Christian, 2007.
"The Impossibility of a Just Pigouvian,"
Economics Working Papers
2007,10, Christian-Albrechts-University of Kiel, Department of Economics.
- Lambert, Peter & Zheng, Buhong, 2011. "On the consistent measurement of attainment and shortfall inequality," Journal of Health Economics, Elsevier, vol. 30(1), pages 214-219, January.
- M. Lasso de la Vega & Ana Urrutia, 2011. "Characterizing how to aggregate the individuals’ deprivations in a multidimensional framework," Journal of Economic Inequality, Springer, vol. 9(2), pages 183-194, June.
- Coral del Río & Olga Alonso-Villar, 2007. "Rankings of Income Distributions: A Note on Intermediate Inequality Indices," Working Papers 68, ECINEQ, Society for the Study of Economic Inequality.
- Kjellsson, Gustav & Gerdtham, Ulf-G., 2013. "Lost in Translation: Rethinking the Inequality-Equivalence Criteria for Bounded Health Variables," Working Papers 2013:18, Lund University, Department of Economics, revised 02 Jan 2014.
- Paul Allanson & Dennis Petrie, 2012.
"Understanding the vertical equity judgements underpinning health inequality measures,"
Dundee Discussion Papers in Economics
264, Economic Studies, University of Dundee.
- Allanson, Paul & Petrie, Dennis, 2012. "Understanding the vertical equity judgements underpinning health inequality measures," SIRE Discussion Papers 2012-06, Scottish Institute for Research in Economics (SIRE).
- Dasgupta, Indraneel & Kanbur, Ravi, 2008.
"Should Egalitarians Expropriate Philanthropists?,"
IZA Discussion Papers
3317, Institute for the Study of Labor (IZA).
- Dasgupta, Indraneel & Kanbur, Ravi, 2007. "Should Egalitarians Expropriate Philanthropists?," CEPR Discussion Papers 6362, C.E.P.R. Discussion Papers.
- Indraneel Dasgupta & Ravi Kanbur, 2006. "Should Egalitarians Expropriate Philanthropists?," CEDI Discussion Paper Series 06-11, Centre for Economic Development and Institutions(CEDI), Brunel University.
- Dasgupta, Indraneel & Kanbur, Ravi, 2007. "Should Egalitarians Expropriate Philanthropists?," Working Papers 126999, Cornell University, Department of Applied Economics and Management.
- Indraneel Dasgupta, & Ravi Kanbur, . "Should Egalitarians Expropriate Philanthropists?," Discussion Papers 07/13, University of Nottingham, CREDIT.
- Indraneel Dasgupta & Ravi Kanbur, 2011. "Does philanthropy reduce inequality?," Journal of Economic Inequality, Springer, vol. 9(1), pages 1-21, March.
- Buhong Zheng, 2007. "Inequality orderings and unit consistency," Social Choice and Welfare, Springer, vol. 29(3), pages 515-538, October.
- Casilda Lasso de la Vega & Oihana Aristondo, 2010.
"Proposing indicators to measure achievement and shortfall inequality consistently,"
Brooks World Poverty Institute Working Paper Series
12010, BWPI, The University of Manchester.
- Lasso de la Vega, Casilda & Aristondo, Oihana, 2012. "Proposing indicators to measure achievement and shortfall inequality consistently," Journal of Health Economics, Elsevier, vol. 31(4), pages 578-583.
- Beckman, Steve & James Smith, W. & Zheng, Buhong, 2009. "Measuring inequality with interval data," Mathematical Social Sciences, Elsevier, vol. 58(1), pages 25-34, July.
- M-super-a Casilda Lasso de la Vega & Ana Urrutia & Henar Díez, 2010.
"Unit Consistency And Bipolarization Of Income Distributions,"
Review of Income and Wealth,
International Association for Research in Income and Wealth, vol. 56(1), pages 65-83, 03.
- Ma Casilda Lasso de la Vega & Ana Urrutia & Henar Diez, 2008. "Unit-consistency and polarization of income distributions," Working Papers 100, ECINEQ, Society for the Study of Economic Inequality.
- Francisco Azpitarte & Olga Alonso-Villar, 2012. "A Dominance Criterion for Measuring Income Inequality from a Centrist View: The Case of Australia," Melbourne Institute Working Paper Series wp2012n03, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
- Satya Chakravarty & Swami Tyagarupananda, 2009. "The subgroup decomposable intermediate indices of inequality," Spanish Economic Review, Springer, vol. 11(2), pages 83-97, June.
- MÂª Casilda Lasso de la Vega & Ana Urrutia & Henar Diez, 2009. "The Bourguignon and Chakravarty multidimensional poverty family: A characterization," Working Papers 109, ECINEQ, Society for the Study of Economic Inequality.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.