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On Bounded Dominance Criteria

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Author Info
Erwin Ooghe (Catholic University of Leuven)
Peter J. Lambert () (University of Oregon Economics Department)

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Abstract

A well-known criterion to make heterogeneous welfare comparisons is Atkinson and Bourguignon’s (1987) sequential generalized Lorenz dominance (SGLD) criterion. Recently, Fleurbaey, Hagneré and Trannoy (2003) convincingly argue that it contains unreasonable household utility profiles and suggest to put (lower and upper) bounds on the needs of the different household types. First, we generalize Atkinson and Bourguignon’s SGLD criterion, by introducing lower bounds in the household utility profiles. Second, we propose a new SGLD criterion by introducing upper bounds in a similar way. Third, we impose lower and upper bounds simultaneously and obtain a criterion which is intermediate between Ebert’s (1999) equivalence scale weighted approach and Atkinson and Bourguignon’s (1987) SGLD approach.

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File URL: http://economics.uoregon.edu/papers/UO-2005-6_Lambert_Dominance.pdf
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Paper provided by University of Oregon Economics Department in its series University of Oregon Economics Department Working Papers with number 2005-6.

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Length: 20
Date of creation: 01 May 2005
Date of revision: 01 May 2005
Handle: RePEc:ore:uoecwp:2005-6

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Related research
Keywords: sequential dominance welfare equivalence scales

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Find related papers by JEL classification:
D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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References listed on IDEAS
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.:
  1. 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. [Downloadable!] (restricted)
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  2. Chambaz, Christine & Maurin, Eric, 1998. "Atkinson and Bourguignon's Dominance Criteria: Extended and Applied to the Measurement of Poverty in France," Review of Income and Wealth, Blackwell Publishing, vol. 44(4), pages 497-513, December.
  3. Udo Ebert & Patrick Moyes, 2003. "Equivalence Scales Reconsidered," Econometrica, Econometric Society, vol. 71(1), pages 319-343, January. [Downloadable!] (restricted)
  4. Udo Ebert, 1999. "Using equivalent income of equivalent adults to rank income distributions," Social Choice and Welfare, Springer, vol. 16(2), pages 233-258. [Downloadable!] (restricted)
  5. Atkinson, A B, 1992. "Measuring Poverty and Differences in Family Composition," Economica, London School of Economics and Political Science, vol. 59(233), pages 1-16, February. [Downloadable!] (restricted)
  6. Jenkins, Stephen P & Lambert, Peter J, 1993. "Ranking Income Distributions When Needs Differ," Review of Income and Wealth, Blackwell Publishing, vol. 39(4), pages 337-56, December.
  7. Lambert, Peter J & Ramos, Xavier, 2002. "Welfare Comparisons: Sequential Procedures for Heterogeneous Populations," Economica, London School of Economics and Political Science, vol. 69(276), pages 549-62, November. [Downloadable!] (restricted)
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  8. Hammond, Peter J., 1975. "A note on extreme inequality aversion," Journal of Economic Theory, Elsevier, vol. 11(3), pages 465-467, December. [Downloadable!] (restricted)
  9. Anthony Shorrocks, 2004. "Inequality and welfare evaluation of heterogeneous income distributions," Journal of Economic Inequality, Springer, vol. 2(3), pages 193-218, July. [Downloadable!] (restricted)
  10. Ebert, Udo, 1997. "Social Welfare When Needs Differ: An Axiomatic Approach," Economica, London School of Economics and Political Science, vol. 64(254), pages 233-44, May. [Downloadable!] (restricted)
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  1. Marc Fleurbaey & Cyrille HagnerŽ & Alain Trannoy, 2007. "Welfare Comparisons of Income Distributions and Family Size," IDEP Working Papers 0702, Institut d'economie publique (IDEP), Marseille, France, revised 16 Jan 2007. [Downloadable!]
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