Price Index Dispersion And Utilitarian Social Evaluation
AbstractThe living standard indicator in utilitarian social evaluation functions (USEF) is the ratio of a nominal living standard and a price index. We show that under weak association of price indices and nominal living standards and usual concavity conditions on utility functions, utilitarian social welfare increases with price index dispersion when the aggregate price level is superior to the arithmetic mean of price indices, and diminishes when it is inferior to the harmonic mean.
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 Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) in its series Working Papers. Serie AD with number 2005-09.
Length: 10 pages
Date of creation: Mar 2005
Date of revision:
Publication status: Published by Ivie
Personal income distribution; economic welfare; price dispersion;
Other versions of this item:
- Muller, Christophe, 2005. "Price index dispersion and utilitarian social evaluation," Economics Letters, Elsevier, vol. 89(2), pages 141-146, November.
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- D6 - Microeconomics - - Welfare Economics
This paper has been announced in the following NEP Reports:
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.:
- Bradbury, Bruce, 1997. "Measuring Poverty Changes with Bounded Equivalence Scales: Australia in the 1980s," Economica, London School of Economics and Political Science, vol. 64(254), pages 245-64, May.
- Pierre-Olivier Gourinchas & Jonathan A. Parker, 2002.
"Consumption Over the Life Cycle,"
Econometric Society, vol. 70(1), pages 47-89, January.
- Pierre-Olivier Gourinchas & Jonathan A. Parker, 1999. "Consumption Over the Life Cycle," NBER Working Papers 7271, National Bureau of Economic Research, Inc.
- Gourinchas, Pierre-Olivier & Parker, Jonathan A, 2000. "Consumption Over the Life-Cycle," CEPR Discussion Papers 2345, C.E.P.R. Discussion Papers.
- Michael Rothschild & Joseph E. Stiglitz, 1972.
"Some Further Results on the Measurement of Inequality,"
Cowles Foundation Discussion Papers
344, Cowles Foundation for Research in Economics, Yale University.
- Rothschild, Michael & Stiglitz, Joseph E., 1973. "Some further results on the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 6(2), pages 188-204, April.
- Ebert,Udo, 1988. "Consumer`s welfare and price uncertainity," Discussion Paper Serie A 168, University of Bonn, Germany.
- Baye, Michael R, 1985. "Price Dispersion and Functional Price Indices," Econometrica, Econometric Society, vol. 53(1), pages 213-23, January.
- Charles Blackorby, & Walter Bossert & David Donaldson,, .
"Price-Independent Welfare Precriptions and Population Size,"
97/17, University of Nottingham, School of Economics.
- Blackorby, Charles & Bossert, Walter & Donaldson, David, 1999. "Price-Independent Welfare Prescriptions and Population Size," Journal of Economic Theory, Elsevier, vol. 84(1), pages 111-119, January.
- Turnovsky, Stephen J & Shalit, Haim & Schmitz, Andrew, 1980. "Consumer's Surplus, Price Instability, and Consumer Welfare," Econometrica, Econometric Society, vol. 48(1), pages 135-52, January.
- Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
- Fleurbaey, M. & Hagnere, C. & Trannoy, A., 1998.
"Welfare Comparisons with Bounded Equivalence Scales,"
9823, Paris X - Nanterre, U.F.R. de Sc. Ec. Gest. Maths Infor..
- Fleurbaey, Marc & Hagnere, Cyrille & Trannoy, Alain, 2003. "Welfare comparisons with bounded equivalence scales," Journal of Economic Theory, Elsevier, vol. 110(2), pages 309-336, June.
- M. Fleurbaey & C. Hagneré & A. Trannoy, 1998. "Welfare comparisons with bounded equivalence scales," THEMA Working Papers 98-23, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
- Kihlstrom, Richard E & Romer, David & Williams, Steve, 1981. "Risk Aversion with Random Initial Wealth," Econometrica, Econometric Society, vol. 49(4), pages 911-20, June.
- Maskin, Eric, 1978. "A Theorem on Utilitarianism," Review of Economic Studies, Wiley Blackwell, vol. 45(1), pages 93-96, February.
- Roberts, Kevin, 1980.
"Price-Independent Welfare Prescriptions,"
Springer, vol. 13(3), pages 277-97, June.
- Slivinski, Alan D., 1983. "Income distribution evaluation and the law of one price," Journal of Public Economics, Elsevier, vol. 20(1), pages 103-112, February.
- Atkinson, Anthony B & Bourguignon, Francois, 1982. "The Comparison of Multi-Dimensioned Distributions of Economic Status," Review of Economic Studies, Wiley Blackwell, vol. 49(2), pages 183-201, April.
- Levy, Haim & Paroush, Jacob, 1974. "Toward multivariate efficiency criteria," Journal of Economic Theory, Elsevier, vol. 7(2), pages 129-142, February.
- Muller, Christophe, 2002. "Prices and living standards: evidence for Rwanda," Journal of Development Economics, Elsevier, vol. 68(1), pages 187-203, June.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Departamento de Edición).
If references are entirely missing, you can add them using this form.