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Welfare comparisons with bounded equivalence scales

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  • Fleurbaey, Marc
  • Hagnere, Cyrille
  • Trannoy, Alain

Abstract

The paper considers the problem of comparing income distributions for heterogeneous populations. Following Atkinson and Bourguignon (1987), we divide the population in different groups of needs and evaluate the social welfare with a utilitarian function. By considering the Generalized Pigou-Dalton principle introduced by Ebert (1995a), we find an implementable condition of dominance which allows to rank more distributions than the Bourguignon criteria (1989).

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Economic Theory.

Volume (Year): 110 (2003)
Issue (Month): 2 (June)
Pages: 309-336

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Handle: RePEc:eee:jetheo:v:110:y:2003:i:2:p:309-336

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Web page: http://www.elsevier.com/locate/inca/622869

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  1. Pollak, Robert A & Wales, Terence J, 1979. "Welfare Comparisons and Equivalence Scales," American Economic Review, American Economic Association, vol. 69(2), pages 216-21, May.
  2. Ebert, Udo, 1995. "Income inequality and differences in household size," Mathematical Social Sciences, Elsevier, vol. 30(1), pages 37-55, August.
  3. Jenkins, Stephen P & Cowell, Frank A, 1994. "Parametric Equivalence Scales and Scale Relativities," Economic Journal, Royal Economic Society, vol. 104(425), pages 891-900, July.
  4. Glewwe, Paul, 1991. "Household equivalence scales and the measurement of inequality : Transfers from the poor to the rich could decrease inequality," Journal of Public Economics, Elsevier, vol. 44(2), pages 211-216, March.
  5. Chambaz, Christine & Maurin, Eric, 1998. "Atkinson and Bourguignon's Dominance Criteria: Extended and Applied to the Measurement of Poverty in France," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 44(4), pages 497-513, December.
  6. Stephen P. Jenkins, 1991. "Income Inequality and Living standards: Changes in the 1970s and 1980s," Fiscal Studies, Institute for Fiscal Studies, vol. 12(1), pages 1-28, February.
  7. d'Aspremont, Claude & Gevers, Louis, 1977. "Equity and the Informational Basis of Collective Choice," Review of Economic Studies, Wiley Blackwell, vol. 44(2), pages 199-209, June.
  8. Jenkins, Stephen P & Lambert, Peter J, 1993. "Ranking Income Distributions When Needs Differ," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 39(4), pages 337-56, December.
  9. Bourguignon, Francois, 1989. "Family size and social utility : Income distribution dominance criteria," Journal of Econometrics, Elsevier, vol. 42(1), pages 67-80, September.
  10. Udo Ebert, 1999. "Using equivalent income of equivalent adults to rank income distributions," Social Choice and Welfare, Springer, vol. 16(2), pages 233-258.
  11. Shorrocks, Anthony F, 1983. "Ranking Income Distributions," Economica, London School of Economics and Political Science, vol. 50(197), pages 3-17, February.
  12. Ebert, Udo, 1997. "Social Welfare When Needs Differ: An Axiomatic Approach," Economica, London School of Economics and Political Science, vol. 64(254), pages 233-44, May.
  13. Ebert, Udo, 2000. "Sequential Generalized Lorenz Dominance and Transfer Principles," Bulletin of Economic Research, Wiley Blackwell, vol. 52(2), pages 113-22, April.
  14. Ok, Efe A. & Lambert, Peter J., 1999. "On evaluating social welfare by sequential generalized Lorenz dominance," Economics Letters, Elsevier, vol. 63(1), pages 45-53, April.
  15. 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.
  16. Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
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