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A dominance approach to the appraisal of the distribution of well-being across countries

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  • Muller, Christophe
  • Trannoy, Alain

Abstract

This paper proposes a dominance approach to study inequality of well-being across countries. We consider a class of well-being indices based on the three attributes used in the HDI (Human Development Index). Indices are required to satisfy: preference for egalitarian marginal distributions of income, health and education, ALEP substitution of attributes and priority to poor countries in allocating funds to enhance health and education. We exhibit sufficient conditions for checking dominance over the defined class of well-being indices. We apply our method to country data from 2000 to 2005. The deterioration in health conditions in poor countries is why welfare improvements at the world level cannot be ascertained.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Public Economics.

Volume (Year): 95 (2011)
Issue (Month): 3-4 (April)
Pages: 239-246

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Handle: RePEc:eee:pubeco:v:95:y:2011:i:3-4:p:239-246

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Web page: http://www.elsevier.com/locate/inca/505578

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Keywords: Multidimensioned welfare Stochastic dominance Human Development Index;

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References

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  1. Nicolas Gravel, 2007. "Is India Better off Today Than 15 Years Ago? A Robust Multidimensional Answer," Working Papers id:1056, eSocialSciences.
  2. Jean-Yves Duclos & David Sahn & Stephen D. Younger, 2005. "Robust Multidimensional Spatial Poverty Comparisons in Ghana, Madagascar, and Uganda," Cahiers de recherche 0528, CIRPEE.
  3. Koen Decancq & André Decoster & Erik Schokkaert, 2007. "The evolution of World inequality in Well-being," Center for Economic Studies - Discussion papers ces0704, Katholieke Universiteit Leuven, Centrum voor Economische Studiën.
  4. Bourguignon, F. & Chakravarty, S.R., 1998. "The Measurement of Multidimensional Poverty," DELTA Working Papers 98-12, DELTA (Ecole normale supérieure).
  5. Foster, James E & Shorrocks, Anthony F, 1988. "Poverty Orderings," Econometrica, Econometric Society, vol. 56(1), pages 173-77, January.
  6. Shorrocks, Anthony F, 1983. "Ranking Income Distributions," Economica, London School of Economics and Political Science, vol. 50(197), pages 3-17, February.
  7. Duclos, Jean-Yves & Sahn, David & Younger, Stephen D., 2001. "Robust Multidimensional Poverty Comparisons," Cahiers de recherche 0115, Université Laval - Département d'économique.
  8. Patrick MOYES (GREThA et IDEP Marseille), 2011. "Comparisons of Heterogeneous Distributions and Dominance Criteria," Cahiers du GREThA 2011-23, Groupe de Recherche en Economie Théorique et Appliquée.
  9. Sen, Amartya, 1973. "On Economic Inequality," OUP Catalogue, Oxford University Press, number 9780198281931.
  10. Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
  11. Foster, James E. & Shorrocks, Anthony F., 1988. "Inequality and poverty orderings," European Economic Review, Elsevier, vol. 32(2-3), pages 654-661, March.
  12. Kolm, Serge-Christophe, 1977. "Multidimensional Egalitarianisms," The Quarterly Journal of Economics, MIT Press, vol. 91(1), pages 1-13, February.
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Citations

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Cited by:
  1. Gravel, Nicolas & Moyes, Patrick, 2012. "Ethically robust comparisons of bidimensional distributions with an ordinal attribute," Journal of Economic Theory, Elsevier, vol. 147(4), pages 1384-1426.
  2. Sevinc Rende & Murat Donduran, 2013. "Neighborhoods in Development: Human Development Index and Self-organizing Maps," Social Indicators Research, Springer, vol. 110(2), pages 721-734, January.
  3. Channing Arndt & Roberta Distante & M. Azhar Hussain & Lars Peter Østerdal & Pham Lan Huong & Maimuna Ibraimo, 2011. "Ordinal Welfare Comparisons with Multiple Discrete Indicators: A First Order Dominance Approach and Application to Child Poverty," Discussion Papers 11-13, University of Copenhagen. Department of Economics.
  4. Nicholas Rohde & Ross Guest, 2013. "Multidimensional Racial Inequality in the United States," Social Indicators Research, Springer, vol. 114(2), pages 591-605, November.
  5. Sonne-Schmidt, Christoffer & Tarp, Finn & Osterdal, Lars Peter, 2013. "Ordinal multidimensional inequality," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  6. Muller, Christophe & Trannoy, Alain, 2012. "Multidimensional inequality comparisons: A compensation perspective," Journal of Economic Theory, Elsevier, vol. 147(4), pages 1427-1449.

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