Inequality and Envy
AbstractUsing a simple axiomatic structure we characterise two classes ofinequality indices - absolute and relative - that take into account "envy"in the income distribution. The concept of envy incorporated hereconcerns the distance of each person's income from his or herimmediately richer neighbour. This is shown to be similar to justiceconcepts based on income relativities.
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Bibliographic InfoPaper provided by Suntory and Toyota International Centres for Economics and Related Disciplines, LSE in its series STICERD - Distributional Analysis Research Programme Papers with number 88.
Date of creation: Dec 2006
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Web page: http://sticerd.lse.ac.uk/_new/publications/default.asp
Inequality; envy; transfer principle.;
Other versions of this item:
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-08-14 (All new papers)
- NEP-HPE-2007-08-14 (History & Philosophy of Economics)
- NEP-LTV-2007-08-14 (Unemployment, Inequality & Poverty)
- NEP-SOC-2007-08-14 (Social Norms & Social Capital)
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