On Bounded Dominance Criteria
AbstractA well-known criterion to make heterogeneous welfare comparisons is Atkinson and BourguignonÂ’s (1987) sequential generalized Lorenz dominance (SGLD) criterion. Recently, Fleurbaey, HagnerÃ© 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 BourguignonÂ’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 EbertÂ’s (1999) equivalence scale weighted approach and Atkinson and BourguignonÂ’s (1987) SGLD approach.
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Bibliographic InfoPaper provided by University of Oregon Economics Department in its series University of Oregon Economics Department Working Papers with number 2005-6.
Date of creation: 01 May 2005
Date of revision: 01 May 2005
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sequential dominance; welfare; equivalence scales;
Other versions of this item:
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-05-14 (All new papers)
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