Interactions Inequality-Polarization: Characterization Results(*)
Abstract
. Recent literature stresses the multidimensional nature of income distribution. Two of the most relevant components are inequality and polarization. In this paper, we show the restrictions of keeping simultaneously constant these two aspects whenever the distribution of incomes changes. Distributional change could originate from any economic policy or simply from economic growth. Hence, our result implies an effective restriction for policymakers that they cannot avoid and should not ignore. Our proof embodies a general view of polarization that includes the Wolfson and the Esteban and Ray approaches. The paper also develops other links for the case of controlling only one variable and deducing the implications for the other variable.Download Info
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Paper provided by Instituto de Estudios Fiscales in its series Working Papers with number 15-05 Classification-JEL : D30, D63, H20..Length:
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Handle: RePEc:hpe:wpaper:y:2005:i:15
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Keywords: polarization; inequality; economic policy.;References
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Juan Gabriel Rodríguez, 2004.
"Measuring polarization, inequality, welfare and poverty,"
Economic Working Papers at Centro de Estudios Andaluces
E2004/75, Centro de Estudios Andaluces.
- Juan Gabriel Rodríguez, 2006. "Measuring Bipolarization, Inequality, Welfare and Poverty," Working Papers 39, ECINEQ, Society for the Study of Economic Inequality.
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