On bounded dominance criteria
AbstractA well-known criterion to make heterogeneous welfare comparisons is Atkinson and BourguignonÃâs (1987) sequential generalized Lorenz dominance (SGLD) criterion. Recently, Fleurbaey, HagnerÃÂ© and Trannoy (2003) convincingly argue that it contains unreasonable household utility profiles and suggest to put (lower and upper) bounds on the needs of the different household types. First, we generalize Atkinson and BourguignonÃâs SGLD criterion, by introducing lower bounds in the household utility profiles. Second, we propose a new SGLD criterion by introducing upper bounds in a similar way. Third, we impose lower and upper bounds simultaneously and obtain a criterion which is intermediate between EbertÃâs (1999) equivalence scale weighted approach and Atkinson and BourguignonÃâs (1987) SGLD approach.
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Bibliographic InfoArticle provided by Elsevier in its journal Mathematical Social Sciences.
Volume (Year): 52 (2006)
Issue (Month): 1 (July)
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Web page: http://www.elsevier.com/locate/inca/505565
Other versions of this item:
- Erwin Ooghe & Peter J. Lambert, 2005. "On Bounded Dominance Criteria," University of Oregon Economics Department Working Papers 2005-6, University of Oregon Economics Department, revised 01 May 2005.
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
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