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Inequality measurement and the leaky-bucket paradox

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  • Christian Seidl

    ()
    (Institut für Volkswirtschaftslehre der Universität Kiel)

Abstract

The transfer principle requires inequality measures to decrease for mean preserving contractions. How much leakage of transfers can preserve inequality? Conditions are shown for leaky transfers to preserve inequality. We find that positive remainders with positive or negative leakage as well as negative remainders with positive leakage may occur. This constitutes the leaky-bucket paradox.

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File URL: http://www.accessecon.com/pubs/EB/2001/Volume4/EB-01D30001A.pdf
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Bibliographic Info

Article provided by AccessEcon in its journal Economics Bulletin.

Volume (Year): 4 (2001)
Issue (Month): 6 ()
Pages: 1-7

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Handle: RePEc:ebl:ecbull:eb-01d30001

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  1. Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, Elsevier, vol. 2(3), pages 244-263, September.
  2. Creedy, J. & Hurn, S., 1998. "Distributional Preferences and the Extended Gini Measures of Inequality," Department of Economics - Working Papers Series, The University of Melbourne 619, The University of Melbourne.
  3. Sen, Amartya K, 1976. "Poverty: An Ordinal Approach to Measurement," Econometrica, Econometric Society, Econometric Society, vol. 44(2), pages 219-31, March.
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Cited by:
  1. Peter J. Lambert & Giuseppe Lanza, 2003. "The effect on inequality of changing one or two incomes," IFS Working Papers, Institute for Fiscal Studies W03/15, Institute for Fiscal Studies.
  2. Peter Lambert & Giuseppe Lanza, 2006. "The effect on inequality of changing one or two incomes," Journal of Economic Inequality, Springer, Springer, vol. 4(3), pages 253-277, December.
  3. Camacho Cuena, Eva & Neugebauer, Tibor & Seidl, Christian, 2004. "Leaky bucket Paradoxes in income inequality perceptions : an experimental investigation," Economics Working Papers, Christian-Albrechts-University of Kiel, Department of Economics 2004,04, Christian-Albrechts-University of Kiel, Department of Economics.
  4. Schlör, Holger & Fischer, Wolfgang & Hake, Jürgen-Friedrich, 2013. "Sustainable development, justice and the Atkinson index: Measuring the distributional effects of the German energy transition," Applied Energy, Elsevier, Elsevier, vol. 112(C), pages 1493-1499.
  5. Bosmans Kristof, 2012. "Distribution-sensitivity of rank-dependent poverty measures," Research Memorandum, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR) 034, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
  6. de la Vega, Casilda Lasso & Seidl, Christian, 2007. "The Impossibility of a Just Pigouvian," Economics Working Papers, Christian-Albrechts-University of Kiel, Department of Economics 2007,10, Christian-Albrechts-University of Kiel, Department of Economics.
  7. Eva Camacho-Cuena & Tibor Neugebauer & Christian Seidl, 2007. "Leaky Buckets Versus Compensating Justice: An Experimental Investigation," Working Papers, ECINEQ, Society for the Study of Economic Inequality 74, ECINEQ, Society for the Study of Economic Inequality.
  8. Camacho Cuena, Eva & Neugebauer, Tibor & Seidl, Christian, 2005. "Compensating justice beats leaky buckets : an experimental investigation," Economics Working Papers, Christian-Albrechts-University of Kiel, Department of Economics 2005,06, Christian-Albrechts-University of Kiel, Department of Economics.

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