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Between-Group Pigou-Dalton Transfers Author info | Abstract | Publisher info | Download info | Related research | Statistics Mussard, Stéphane (CEPS/INSTEAD, GREDI, GEREM)
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This paper introduces the concept of Pigou-Dalton transfers between populations of income receivers. Gini's mean difference and Dagum's Gini index between populations are axiomatically derived in order to gauge the impact of within- and between-group Pigou-Dalton transfers on Dagum's measure. We show its sensitiveness for any given transfer in the sense that inequality-reducing transfers are captured when transfers occur from higher-income donors to lower-income recipients, which belong to two distinct populations. Accordingly, we point out the implications of between-group transfers on: the ordering of multivariate majorization, the multivariate stochastic dominance in the sense of multivariate Lorenz ordering and zonotope inclusions, the Gini decomposition, and on the use of the generalized entropy index.
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Paper provided by IRISS at CEPS/INSTEAD in its series IRISS Working Paper Series with number
2007-02.
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Length: 23 pages
Date of creation: Mar 2007Date of revision:
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Keywords: Between-group Gini ; Between-group Transfers ; Entropy ; Pigou-Dalton ; Within-group Transfers ; Other versions of this item:
Find related papers by JEL classification: D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
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references 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.)
Lilla, Marco, 2007.
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2007-11, IRISS at CEPS/INSTEAD.
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IRISS Working Paper Series
2007-03, IRISS at CEPS/INSTEAD.
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IRISS Working Paper Series
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2007-07, IRISS at CEPS/INSTEAD.
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