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Designing income distributions with specified inequalities

Author

Listed:
  • Satya R. Chakravarty

    (Indian Statistical Institute
    Indira Gandhi Institute of Development Research)

  • Palash Sarkar

    (Indian Statistical Institute)

Abstract

Often from policy perspective it becomes necessary to arrive at an income distribution whose inequality value coincides with a targeted (low) inequality level. In the present article we address this duality problem in inequality measurement by using the well-known Gini and Bonferroni metrics of inequality. The duality theorem also enables us to determine the financial cost of achieving the targeted inequality value.

Suggested Citation

  • Satya R. Chakravarty & Palash Sarkar, 2021. "Designing income distributions with specified inequalities," Economic Theory Bulletin, Springer;Society for the Advancement of Economic Theory (SAET), vol. 9(2), pages 297-311, October.
    • Handle: RePEc:spr:etbull:v:9:y:2021:i:2:d:10.1007_s40505-021-00212-0
    DOI: 10.1007/s40505-021-00212-0
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    References listed on IDEAS

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    1. Lucas Chancel & Thomas Piketty, 2019. "Indian Income Inequality, 1922‐2015: From British Raj to Billionaire Raj?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 65(S1), pages 33-62, November.
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    Cited by:

    1. Chakravarty, Satya R. & Sarkar, Palash, 2022. "A synthesis of local and effective tax progressivity measurement," MPRA Paper 115180, University Library of Munich, Germany.

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