Multidimensional inequality comparisons: A compensation perspective
Abstract
We provide a unified treatment of the two approaches pioneered by Atkinson and Bourguignon (1982, 1987) [3,4] by resorting to compensation principles in the bivariate case. We treat the attributes of individual utility asymmetrically by assuming that one attribute can be used to compensate another. Our main result consists of two sufficient second-order stochastic dominance conditions. In the case where the compensated variable has a discrete distribution, the distribution of the compensating variable must satisfy a condition which degenerates to the Sequential Generalized Lorenz test for identical marginal distributions of the compensated variable. Furthermore, the distributions of the compensated variable must satisfy the Generalized Lorenz test.Download Info
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Bibliographic Info
Article provided by Elsevier in its journal Journal of Economic Theory.
Volume (Year): 147 (2012)
Issue (Month): 4 ()
Pages: 1427-1449
Contact details of provider:
Web page: http://www.elsevier.com/locate/inca/622869
Related research
Keywords: Multidimensional welfare; Compensation; Dominance; Lorenz criterion;Find related papers by JEL classification:
- D3 - Microeconomics - - Distribution
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- I31 - Health, Education, and Welfare - - Welfare and Poverty - - - General Welfare
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Patrick MOYES, 2013. "Rearrangements and Sequential Rank Order Dominance," Cahiers du GREThA 2013-10, Groupe de Recherche en Economie Théorique et Appliquée.
- Alain Trannoy & Christophe Muller, 2004.
"A Dominance Approach To Well-Being Inequality Across Countries,"
Working Papers. Serie AD
2004-27, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
- Christophe Muller & Alain Trannoy, 2003. "A Dominance Approach to Well-Being Inequality across Countries," IDEP Working Papers 0313, Institut d'economie publique (IDEP), Marseille, France.
- FLEURBAEY, Marc & SCHOKKAERT, Erik, 2011. "Equity in health and health care," CORE Discussion Papers 2011026, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Therese Nilsson, 2010. "Health, Wealth and Wisdom: Exploring Multidimensional Inequality in a Developing Country," Social Indicators Research, Springer, vol. 95(2), pages 299-323, January.
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