Kai-yuen Tsui () (Department of Economics, Chinese University of Hong Kong, Shatin, Hong Kong)
Abstract
This paper generalizes the axiomatic approach to the design of income inequality measures to the multiattribute context. While the extension of most axioms considered desirable for inequality indices is straightforward, it is not entirely clear when a situation is more unequal than another when each person is characterised by a vector of attributes of well-being. We explore two majorization criteria which are partial orders ranking distributions of attributes by their degree of inequality. The two criteria are motivated by the Pigou-Dalton Transfer Principle in the unidimensional context and its equivalent formulation. These criteria gauge inequality loosely speaking with respect to the dispersion of the multidimensional distribution of the attributes. They, however, fail to address a different dimension of multivariate inequality pertaining to an increase in the correlation of the attributes. In this connection, this paper introduces a correlation-increasing majorization criterion proposed by Boland and Proschan (1988). Finally, in conjunction with other axioms commonly invoked in the literature on inequality, the majorization criteria lead inexorably to the class of multidimensional generalized entropy measures.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
page. Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
For technical questions regarding this item, or to correct its listing, contact: (Christopher F Baum).
Related research
Keywords:
Other versions of this item:
Cited by: (explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)