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Welfare, inequality and the transformation of incomes the case of weighted income distributions

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  • Udo Ebert
  • Patrick Moyes

Abstract

The paper extends previous results on welfare and inequality comparisons when incomes are weighted and the weights are not necessarily equal across the statistical units. A flexible approach to inequality measurement is allowed which admits as particular cases the relative and absolute views. We next identify the individualistic and symmetric transformations that generate and preserve the welfare and inequality rankings of income distributions. The former results fill a gap between the theoretical analysis and the practical measurement of welfare and inequality, while the latter results provide insights for the analysis of redistributive policies. Copyright Springer-Verlag 2002

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Bibliographic Info

Article provided by Springer in its journal Journal of Economics.

Volume (Year): 9 (2002)
Issue (Month): 1 (December)
Pages: 9-50

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Handle: RePEc:kap:jeczfn:v:9:y:2002:i:1:p:9-50

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Web page: http://www.springerlink.com/link.asp?id=108909

Related research

Keywords: Weighted Income Distributions; Inequality and Welfare Comparisons; Income Transformation; D31; D63; H24;

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References

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  1. Ebert, Udo & Moyes, Patrick, 2000. "Consistent Income Tax Structures When Households Are Heterogeneous," Journal of Economic Theory, Elsevier, vol. 90(1), pages 116-150, January.
  2. Dasgupta, Partha & Sen, Amartya & Starrett, David, 1973. "Notes on the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 6(2), pages 180-187, April.
  3. Amiel, Yoram & Cowell, Frank A., 1992. "Measurement of income inequality : Experimental test by questionnaire," Journal of Public Economics, Elsevier, vol. 47(1), pages 3-26, February.
  4. Moyes, Patrick, 1992. "The through-time redistributive effect of income taxation : The intermediate inequality view," Mathematical Social Sciences, Elsevier, vol. 24(1), pages 59-71, August.
  5. Udo Ebert & Patrick Moyes, 2000. "Adjusting Incomes for Needs: Can One Avoid Equivalence Scales?," Econometric Society World Congress 2000 Contributed Papers 0917, Econometric Society.
  6. Udo Ebert, 1999. "Using equivalent income of equivalent adults to rank income distributions," Social Choice and Welfare, Springer, vol. 16(2), pages 233-258.
  7. Harrison, Elizabeth & Seidl, Christian, 1994. " Perceptional Inequality and Preferential Judgements: An Empirical Examination of Distributional Axioms," Public Choice, Springer, vol. 79(1-2), pages 61-81, April.
  8. Bossert, Walter & Pfingsten, Andreas, 1990. "Intermediate inequality: concepts, indices, and welfare implications," Mathematical Social Sciences, Elsevier, vol. 19(2), pages 117-134, April.
  9. Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
  10. Shorrocks, Anthony F, 1983. "Ranking Income Distributions," Economica, London School of Economics and Political Science, vol. 50(197), pages 3-17, February.
  11. Besley, Timothy J & Preston, I P, 1988. "Invariance and the Axiomatics of Income Tax Progression: A Comment," Bulletin of Economic Research, Wiley Blackwell, vol. 40(2), pages 159-63, April.
  12. Moyes, Patrick, 1987. "A new concept of Lorenz domination," Economics Letters, Elsevier, vol. 23(2), pages 203-207.
  13. Coral del RÎo & Javier Ruiz-Castillo, 2000. "Intermediate inequality and welfare," Social Choice and Welfare, Springer, vol. 17(2), pages 223-239.
  14. Jakobsson, Ulf, 1976. "On the measurement of the degree of progression," Journal of Public Economics, Elsevier, vol. 5(1-2), pages 161-168.
  15. Moyes Patrick, 1994. "Inequality Reducing and Inequality Preserving Transformations of Incomes: Symmetric and Individualistic Transformations," Journal of Economic Theory, Elsevier, vol. 63(2), pages 271-298, August.
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Cited by:
  1. Luis J. Imedio Olmedo & Encarnación M. Parrado Gallardo & Maria Dolores Sarrión Gavilán, 2003. "Códigos impositivos lineales. Su efecto sobre poblaciones heterogéneas," Hacienda Pública Española, IEF, vol. 167(4), pages 57-85, December.
  2. Chateauneuf, Alain & Moyes, Patrick, 2005. "Measuring Inequality Without the Pigou-Dalton Condition," Working Paper Series RP2005/02, World Institute for Development Economic Research (UNU-WIDER).
  3. Alain Chateauneuf & Patrick Moyes, 2005. "Lorenz non-consistent welfare and inequality measurement," Journal of Economic Inequality, Springer, vol. 2(2), pages 61-87, January.

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