Price index dispersion and utilitarian social evaluation
AbstractThe living standard indicator in utilitarian social evaluation functions (USEF) is the ratio of a nominal living standard and a price index. We show that under weak association of price indices and nominal living standards and usual concavity conditions on utility functions, utilitarian social welfare increases with price index dispersion when the aggregate price level is superior to the arithmetic mean of price indices, and diminishes when it is inferior to the harmonic mean.
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 Elsevier in its journal Economics Letters.
Volume (Year): 89 (2005)
Issue (Month): 2 (November)
Contact details of provider:
Web page: http://www.elsevier.com/locate/ecolet
Other versions of this item:
- Christophe Muller, 2005. "Price Index Dispersion And Utilitarian Social Evaluation," Working Papers. Serie AD 2005-09, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- D6 - Microeconomics - - Welfare Economics
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Levy, Haim & Paroush, Jacob, 1974. "Toward multivariate efficiency criteria," Journal of Economic Theory, Elsevier, vol. 7(2), pages 129-142, February.
- Ebert,Udo, 1988. "Consumer`s welfare and price uncertainity," Discussion Paper Serie A 168, University of Bonn, Germany.
- Pierre-Olivier Gourinchas & Jonathan A. Parker, 2002.
"Consumption Over the Life Cycle,"
Econometric Society, vol. 70(1), pages 47-89, January.
- Pierre-Olivier Gourinchas & Jonathan A. Parker, 1999. "Consumption Over the Life Cycle," NBER Working Papers 7271, National Bureau of Economic Research, Inc.
- Gourinchas, Pierre-Olivier & Parker, Jonathan A, 2000. "Consumption Over the Life-Cycle," CEPR Discussion Papers 2345, C.E.P.R. Discussion Papers.
- Turnovsky, Stephen J & Shalit, Haim & Schmitz, Andrew, 1980. "Consumer's Surplus, Price Instability, and Consumer Welfare," Econometrica, Econometric Society, vol. 48(1), pages 135-52, January.
- Muller, Christophe, 2002. "Prices and living standards: evidence for Rwanda," Journal of Development Economics, Elsevier, vol. 68(1), pages 187-203, June.
- Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
- Bradbury, Bruce, 1997. "Measuring Poverty Changes with Bounded Equivalence Scales: Australia in the 1980s," Economica, London School of Economics and Political Science, vol. 64(254), pages 245-64, May.
- Fleurbaey, M. & Hagnere, C. & Trannoy, A., 1998.
"Welfare Comparisons with Bounded Equivalence Scales,"
9823, Paris X - Nanterre, U.F.R. de Sc. Ec. Gest. Maths Infor..
- Fleurbaey, Marc & Hagnere, Cyrille & Trannoy, Alain, 2003. "Welfare comparisons with bounded equivalence scales," Journal of Economic Theory, Elsevier, vol. 110(2), pages 309-336, June.
- M. Fleurbaey & C. Hagneré & A. Trannoy, 1998. "Welfare comparisons with bounded equivalence scales," THEMA Working Papers 98-23, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
- Rothschild, Michael & Stiglitz, Joseph E., 1973.
"Some further results on the measurement of inequality,"
Journal of Economic Theory,
Elsevier, vol. 6(2), pages 188-204, April.
- Michael Rothschild & Joseph E. Stiglitz, 1972. "Some Further Results on the Measurement of Inequality," Cowles Foundation Discussion Papers 344, Cowles Foundation for Research in Economics, Yale University.
- Blackorby, Charles & Bossert, Walter & Donaldson, David, 1999.
"Price-Independent Welfare Prescriptions and Population Size,"
Journal of Economic Theory,
Elsevier, vol. 84(1), pages 111-119, January.
- Charles Blackorby, & Walter Bossert & David Donaldson,, . "Price-Independent Welfare Precriptions and Population Size," Discussion Papers 97/17, University of Nottingham, School of Economics.
- Slivinski, Alan D., 1983. "Income distribution evaluation and the law of one price," Journal of Public Economics, Elsevier, vol. 20(1), pages 103-112, February.
- Kihlstrom, Richard E & Romer, David & Williams, Steve, 1981. "Risk Aversion with Random Initial Wealth," Econometrica, Econometric Society, vol. 49(4), pages 911-20, June.
- Baye, Michael R, 1985. "Price Dispersion and Functional Price Indices," Econometrica, Econometric Society, vol. 53(1), pages 213-23, January.
- Maskin, Eric, 1978. "A Theorem on Utilitarianism," Review of Economic Studies, Wiley Blackwell, vol. 45(1), pages 93-96, February.
- Roberts, Kevin, 1980.
"Price-independent welfare prescriptions,"
Journal of Public Economics,
Elsevier, vol. 13(3), pages 277-297, June.
- Atkinson, Anthony B & Bourguignon, Francois, 1982. "The Comparison of Multi-Dimensioned Distributions of Economic Status," Review of Economic Studies, Wiley Blackwell, vol. 49(2), pages 183-201, April.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
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.