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Measuring equality of opportunity by Shapley value

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  • Giuseppe Pignataro

    ()
    (Department of Economics, University of Bologna)

Abstract

Equality of opportunity is a political ideal which requires that ex-ante inequalities, and only those inequalities, should be eliminated. Justice requires leveling the playing field by rendering everyone's opportunities equal in an appropriate sense, and then letting individual choices and their effects dictate further outcomes. In this paper we propose a methodology to decompose the path-independent Atkinson index of equality through Shapley value seeking for a measure of overall inequality produced by the marginal contributions of the opportunity and the responsibility component.

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Bibliographic Info

Article provided by AccessEcon in its journal Economics Bulletin.

Volume (Year): 30 (2010)
Issue (Month): 1 ()
Pages: 786-798

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Handle: RePEc:ebl:ecbull:eb-09-00665

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Keywords: Equality of opportunity; Shapley decomposition; Atkinson index; path independency.;

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References

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  1. Vitorocco Peragine, . "Measuring and Implementing Equality of Opportunity for Income," Discussion Papers, Department of Economics, University of York 98/11, Department of Economics, University of York.
  2. Daniele Checchi & Vito Peragine, 2010. "Inequality of opportunity in Italy," Journal of Economic Inequality, Springer, Springer, vol. 8(4), pages 429-450, December.
  3. Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, Elsevier, vol. 2(3), pages 244-263, September.
  4. repec:ebl:ecbull:v:4:y:2003:i:29:p:1-12 is not listed on IDEAS
  5. Chantreuil, F. & Trannoy, A., 1999. "Inequality Decomposition Values: the Trade-Off Between Marginality and Consistency," Papers, Paris X - Nanterre, U.F.R. de Sc. Ec. Gest. Maths Infor. 99-24, Paris X - Nanterre, U.F.R. de Sc. Ec. Gest. Maths Infor..
  6. Silber, Jacques, 1989. "Factor Components, Population Subgroups and the Computation of the Gini Index of Inequality," The Review of Economics and Statistics, MIT Press, vol. 71(1), pages 107-15, February.
  7. James E. Foster & Artyom A. Shneyerov, 1999. "A general class of additively decomposable inequality measures," Economic Theory, Springer, Springer, vol. 14(1), pages 89-111.
  8. Shorrocks, Anthony F, 1984. "Inequality Decomposition by Population Subgroups," Econometrica, Econometric Society, Econometric Society, vol. 52(6), pages 1369-85, November.
  9. Frank Cowell, 1998. "Measurement of inequality," LSE Research Online Documents on Economics, London School of Economics and Political Science, LSE Library 2084, London School of Economics and Political Science, LSE Library.
  10. Mercedes Sastre & Alain Trannoy, 2002. "Shapley inequality decomposition by factor components: Some methodological issues," Journal of Economics, Springer, Springer, vol. 9(1), pages 51-89, December.
  11. Mª Casilda Lasso de la Vega & Ana Marta Urrutia, 2003. "A new factorial decomposition for the atkinson measure," Economics Bulletin, AccessEcon, vol. 4(29), pages 1-12.
  12. Foster, James E. & Shneyerov, Artyom A., 2000. "Path Independent Inequality Measures," Journal of Economic Theory, Elsevier, Elsevier, vol. 91(2), pages 199-222, April.
  13. Mª Casilda Lasso de la Vega & Ana Marta Urrutia, 2005. "Path independent multiplicatively decomposable inequality measures," Investigaciones Economicas, Fundación SEPI, Fundación SEPI, vol. 29(2), pages 379-387, May.
  14. Silber, Jacques, 1993. "Inequality Decomposition by Income," The Review of Economics and Statistics, MIT Press, vol. 75(3), pages 545-47, August.
  15. Charles Blackorby & David Donaldson & Maria Auersperg, 1981. "A New Procedure for the Measurement of Inequality within and among Population Subgroups," Canadian Journal of Economics, Canadian Economics Association, Canadian Economics Association, vol. 14(4), pages 665-85, November.
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Cited by:
  1. John Creedy & Nicolas Hérault, 2011. "Decomposing Inequality and Social Welfare Changes: The Use of Alternative Welfare Metrics," Melbourne Institute Working Paper Series, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne wp2011n08, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
  2. A. Palestini & G. Pignataro, 2013. "A multi-factor inequality approach to a transfer scheme: the case of Common Agricultural Policy," Working Papers wp891, Dipartimento Scienze Economiche, Universita' di Bologna.

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