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Resource Egalitarianism with a Dash of Efficiency

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  • SPRUMONT, Yves

Abstract

We study the problem of defining inequality-averse social orderings over the space of allocations in a multi-commodity environment where individuals differ only in their preferences. We formulate notions of egalitarianism based on the axiom that any dominance between the consumption bundles of two individuals should be reduced. This Dominance Aversion requirement is compatible with Consensus, a weak version of the Pareto principle saying that an allocation y is better than x whenever everybody finds that everyone's bundle at y is better than at x. We identify two families of multidimensional leximin orderings satisfying Dominance Aversion and Consensus. We also discuss weaker forms of egalitarianism based on a new definition of multidimensional Lorenz dominance.

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Bibliographic Info

Paper provided by Centre interuniversitaire de recherche en économie quantitative, CIREQ in its series Cahiers de recherche with number 03-2007.

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Length: 28 pages
Date of creation: 2007
Date of revision:
Handle: RePEc:mtl:montec:03-2007

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Keywords: multidimensional inequality; leximin; Lorenz dominance;

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References

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  1. M. Fleurbaey & F. Maniquet, 2008. "Fair social orderings," Economic Theory, Springer, vol. 34(1), pages 25-45, January.
  2. Marc Fleurbaey, 2001. "The Pazner-Schmeidler Social Ordering: A Defense," Working Papers 328, Bielefeld University, Center for Mathematical Economics.
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  4. Fleurbaey, Marc, 2007. "Two criteria for social decisions," Journal of Economic Theory, Elsevier, vol. 134(1), pages 421-447, May.
  5. MANIQUET, François, . "Social orderings and the evaluation of public policy," CORE Discussion Papers RP -2074, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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  7. M. Fleurbaey & A. Trannoy, 2000. "The Impossibility of a Paretian Egalitarian," THEMA Working Papers 2000-26, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
  8. Thibault Gajdos & John Weymark, 2005. "Multidimensional Generalized Gini Indices," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00085881, HAL.
  9. Shorrocks, Anthony F, 1983. "Ranking Income Distributions," Economica, London School of Economics and Political Science, vol. 50(197), pages 3-17, February.
  10. Tsui Kai-Yuen, 1995. "Multidimensional Generalizations of the Relative and Absolute Inequality Indices: The Atkinson-Kolm-Sen Approach," Journal of Economic Theory, Elsevier, vol. 67(1), pages 251-265, October.
  11. Gleb Koshevoy, 1997. "The Lorenz zonotope and multivariate majorizations," Social Choice and Welfare, Springer, vol. 15(1), pages 1-14.
  12. Hausman, Daniel & McPherson, Michael, 1994. "Preference, Belief, and Welfare," American Economic Review, American Economic Association, vol. 84(2), pages 396-400, May.
  13. Pazner, Elisha A & Schmeidler, David, 1978. "Egalitarian Equivalent Allocations: A New Concept of Economic Equity," The Quarterly Journal of Economics, MIT Press, vol. 92(4), pages 671-87, November.
  14. Kolm, Serge-Christophe, 1977. "Multidimensional Egalitarianisms," The Quarterly Journal of Economics, MIT Press, vol. 91(1), pages 1-13, February.
  15. Hammond, Peter J, 1976. "Equity, Arrow's Conditions, and Rawls' Difference Principle," Econometrica, Econometric Society, vol. 44(4), pages 793-804, July.
  16. John A. Weymark, 2003. "The Normative Approach to the Measurement of Multidimensional Inequality," Vanderbilt University Department of Economics Working Papers 0314, Vanderbilt University Department of Economics, revised Jan 2004.
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Cited by:
  1. Marc Fleurbaey & Erik Schokkaert, 2013. "Behavioral Welfare Economics and Redistribution," American Economic Journal: Microeconomics, American Economic Association, vol. 5(3), pages 180-205, August.
  2. Gajdos, Thibault & Weymark, John A., 2012. "Introduction to inequality and risk," Journal of Economic Theory, Elsevier, vol. 147(4), pages 1313-1330.

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