Does less inequality among households mean less inequality among individuals ?
AbstractConsider an income distribution among households of the same size in which individuals, equally needy from the point of view of an ethical observer, are treated unfairly. Individuals are split into two types, the dominant and the dominated. We look for conditions under which welfare and inequality quasi-orders established at the household level still hold at the individual one. A necessary and sufficient condition for the Generalized Lorenz test is that the income of dominated individuals is a concave function of the household income: individuals of poor households have to stand more together than individuals of rich households. This property also proves to be crucial for the preservation of the Relative and Absolute Lorenz criteria, when the more egalitarian distribution is the poorest. Extensions to individuals heterogeneous in needs and more than two types are also provided.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. 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.
Bibliographic InfoPaper provided by THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise in its series THEMA Working Papers with number 2004-11.
Date of creation: 2004
Date of revision:
Contact details of provider:
Postal: 33, boulevard du port - 95011 Cergy-Pontoise Cedex
Phone: 33 1 34 25 60 63
Fax: 33 1 34 25 62 33
Web page: http://thema.u-cergy.fr
More information through EDIRC
Other versions of this item:
- Peluso, Eugenio & Trannoy, Alain, 2007. "Does less inequality among households mean less inequality among individuals?," Journal of Economic Theory, Elsevier, vol. 133(1), pages 568-578, March.
- Eugenio Peluso & Alain Trannoy, 2004. "Does Less Inequality among Households Mean Less Inequality among Individuals?," IDEP Working Papers 0407, Institut d'economie publique (IDEP), Marseille, France, revised Jun 2004.
- Eugenio Peluso & Alain Trannoy, 2004. "Does less inequality among households mean less inequality among individuals?," Department of Economics University of Siena 432, Department of Economics, University of Siena.
- D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
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.:
- Shorrocks, Anthony F, 1983. "Ranking Income Distributions," Economica, London School of Economics and Political Science, vol. 50(197), pages 3-17, February.
- Kanbur, Ravi & Haddad, Lawrence, 1994.
"Are Better Off Households More Unequal or Less Unequal?,"
Oxford Economic Papers,
Oxford University Press, vol. 46(3), pages 445-58, July.
- Haddad, Lawrence & Kanbur, Ravi, 1990. "Are better off households more unequal or less unequal ?," Policy Research Working Paper Series 373, The World Bank.
- Moyes, Patrick, 1987. "A new concept of Lorenz domination," Economics Letters, Elsevier, vol. 23(2), pages 203-207.
- Yaari, Menahem E, 1977. "A Note on Separability and Quasiconcavity," Econometrica, Econometric Society, vol. 45(5), pages 1183-86, July.
- Couprie, Hélène & Peluso, Eugenio & Trannoy, Alain, 2010.
"Is power more evenly balanced in poor households?,"
Journal of Public Economics,
Elsevier, vol. 94(7-8), pages 493-507, August.
- Alessandra Michelangeli & Eugenio Peluso & Alain Trannoy, 2011. "Detecting a change in wealth concentration without the knowledge of the wealth distribution," Journal of Economic Inequality, Springer, vol. 9(3), pages 373-391, September.
- Mangiavacchi, Lucia & Piccoli, Luca, 2011. "Improving the measurement of child welfare in the context of intra-household inequality," Children and Youth Services Review, Elsevier, vol. 33(2), pages 226-232, February.
- Bargain, Olivier, 2004.
"Normative Evaluation of Tax Policies: From Households to Individuals,"
IZA Discussion Papers
1441, Institute for the Study of Labor (IZA).
- Olivier Bargain, 2008. "Normative evaluation of tax policies: from households to individuals," Journal of Population Economics, Springer, vol. 21(2), pages 339-371, April.
- Martina Menon & Elisa Pagani & Federico Perali, 2012. "A Characterization of Collective Individual Expenditure Functions," Working Papers 20/2012, University of Verona, Department of Economics.
- Eugenio Peluso & Alain Trannoy, 2005. "Do redistributive schemes reduce inequality between individuals?," Working Papers 26, University of Verona, Department of Economics.
- Eugenio Peluso & Alain Trannoy, 2012. "The Cake-eating problem: Non-linear sharing rules," Working Papers 26/2012, University of Verona, Department of Economics.
- Lucia Mangiavacchi & Luca Piccoli, 2009. "Child welfare and intra-household inequality in Albania," Working Papers 149, ECINEQ, Society for the Study of Economic Inequality.
- Helene Couprie & Eugenio Peluso & Alain Trannoy, 2007. "From Household to Individual Welfare Comparisons: A Double Concavity Test," IDEP Working Papers 0701, Institut d'economie publique (IDEP), Marseille, France, revised 01 2007.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Marion Oury).
If references are entirely missing, you can add them using this form.