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A Dominance Approach To Well-Being Inequality Across Countries

Author

Listed:
  • Alain Trannoy

    (EHESS)

  • Christophe Muller

    (Universidad de Alicante)

Abstract

This paper proposes a dominance approach to study well-being inequality across countries at the world level. We consider a class of well-being indices based on the three attributes considered in the HDI (Human Development Index). Indices are required to satisfy preference for egalitarian marginal distributions of income, health and education, inclination for less correlation between attributes and priority to poor countries for allocating funds to improve health and education. We exhibit sufficient conditions which are easy to implement to check dominance over the defined class of well-being indices.

Suggested Citation

  • Alain Trannoy & Christophe Muller, 2004. "A Dominance Approach To Well-Being Inequality Across Countries," Working Papers. Serie AD 2004-27, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    • Handle: RePEc:ivi:wpasad:2004-27
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    References listed on IDEAS

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    1. Sudhir Anand & Amartya Sen, 2000. "The Income Component of the Human Development Index," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 1(1), pages 83-106.
    2. Moyes, Patrick, 2012. "Comparisons of heterogeneous distributions and dominance criteria," Journal of Economic Theory, Elsevier, vol. 147(4), pages 1351-1383.
    3. Sudhir Anand and Amartya Sen, 2000. "The Income Component of Human Development Index," Human Development Occasional Papers (1992-2007) HDOCPA-2000-01, Human Development Report Office (HDRO), United Nations Development Programme (UNDP).
    4. Stephen P. Jenkins & Peter J. Lambert, 1993. "Ranking Income Distributions When Needs Differ," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 39(4), pages 337-356, December.
    5. Anthony B. Atkinson & François Bourguignon, 1987. "Income Distribution and Differences in Needs," Palgrave Macmillan Books, in: George R. Feiwel (ed.), Arrow and the Foundations of the Theory of Economic Policy, chapter 12, pages 350-370, Palgrave Macmillan.
    6. Jenkins, Stephen P & Lambert, Peter J, 1993. "Ranking Income Distributions When Needs Differ," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 39(4), pages 337-356, December.
    7. A. B. Atkinson & F. Bourguignon, 1982. "The Comparison of Multi-Dimensioned Distributions of Economic Status," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 49(2), pages 183-201.
    8. Shorrocks, Anthony F, 1983. "Ranking Income Distributions," Economica, London School of Economics and Political Science, vol. 50(197), pages 3-17, February.
    9. Sen, Amartya, 1973. "On Economic Inequality," OUP Catalogue, Oxford University Press, number 9780198281931.
    10. Gleb Koshevoy, 1997. "The Lorenz zonotope and multivariate majorizations," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 15(1), pages 1-14.
    11. Muller, Christophe & Trannoy, Alain, 2012. "Multidimensional inequality comparisons: A compensation perspective," Journal of Economic Theory, Elsevier, vol. 147(4), pages 1427-1449.
    12. Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
    13. James Foster & Luis Lopez-Calva & Miguel Szekely, 2005. "Measuring the Distribution of Human Development: methodology and an application to Mexico," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 6(1), pages 5-25.
    14. Serge-Christophe Kolm, 1977. "Multidimensional Egalitarianisms," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 91(1), pages 1-13.
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    Cited by:

    1. Decancq, Koen & Decoster, André & Schokkaert, Erik, 2009. "The Evolution of World Inequality in Well-being," World Development, Elsevier, vol. 37(1), pages 11-25, January.
    2. Koen Decancq & Maria Ana Lugo, 2008. "Setting Weights in Multidimensional Indices of Well-Being," OPHI Working Papers 18, Queen Elizabeth House, University of Oxford.
    3. Christophe Muller & Asha Kannan & Roland Alcindor, 2016. "Multidimensional Poverty in Seychelles," AMSE Working Papers 1601, Aix-Marseille School of Economics, France, revised Jan 2016.
    4. Koen Decancq & María Ana Lugo, 2013. "Weights in Multidimensional Indices of Wellbeing: An Overview," Econometric Reviews, Taylor & Francis Journals, vol. 32(1), pages 7-34, January.
    5. Savaglio, Ernesto, 2011. "On multidimensional inequality with variable distribution mean," Journal of Mathematical Economics, Elsevier, vol. 47(4-5), pages 453-461.
    6. N. GRAVEL & Patrick MOYES, 2008. "Bidimensional Inequalities with an Ordinal Variable," Cahiers du GREThA (2007-2019) 2008-14, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    7. Gaston Yalonetzky, 2013. "Stochastic Dominance with Ordinal Variables: Conditions and a Test," Econometric Reviews, Taylor & Francis Journals, vol. 32(1), pages 126-163, January.
    8. Nicolas Gravel & Patrick Moyes, 2011. "Bidimensional Inequalities with an Ordinal Variable," Studies in Choice and Welfare, in: Marc Fleurbaey & Maurice Salles & John A. Weymark (ed.), Social Ethics and Normative Economics, pages 101-127, Springer.

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    More about this item

    Keywords

    Multidimensioned Welfare; Multivariate Inequality; Well-Being Dimensions; Human Development Index;
    All these keywords.

    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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