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An axiomatic characterization of the Theil inequality ordering

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  • Casilda Lasso de la Vega
  • Ana Urrutia
  • Oscar Volij

    ()

Abstract

We axiomatically characterize the Theil ordering of income inequality. In addition to the uncontroversial axioms of anonymity, homogeneity, replication invariance, strong directedness, and a standard continuity property, we appeal to both an independence and a decomposability axioms. These two axioms are ordinal implications of Theil decomposability, the central axiom in previous characterizations of the Theil index. To the best of our knowledge, the present is the first fully ordinal characterization of this index. Copyright Springer-Verlag Berlin Heidelberg 2013

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Bibliographic Info

Article provided by Springer in its journal Economic Theory.

Volume (Year): 54 (2013)
Issue (Month): 3 (November)
Pages: 757-776

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Handle: RePEc:spr:joecth:v:54:y:2013:i:3:p:757-776

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Related research

Keywords: Income inequality; Theil index; Decomposability ; Axiomatic characterization; D63;

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References

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  1. Porath Elchanan Ben & Gilboa Itzhak, 1994. "Linear Measures, the Gini Index, and The Income-Equality Trade-off," Journal of Economic Theory, Elsevier, vol. 64(2), pages 443-467, December.
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  17. Casilda Lasso de la Vega & Ana Urrutia, 2008. "The ‘Extended’ Atkinson family: The class of multiplicatively decomposable inequality measures, and some new graphical procedures for analysts," Journal of Economic Inequality, Springer, vol. 6(2), pages 211-225, June.
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Cited by:
  1. Casilda Lasso de la Vega & Oscar Volij, 2013. "A Simple Proof Of Foster’S (1983) Characterization Of The Theil Measure Of Inequality," Working Papers 1304, Ben-Gurion University of the Negev, Department of Economics.

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