Multidimensional Inequality Measurement: A Proposal
AbstractTwo essential intuitions about the concept of multidimensional inequality have been highlighted in the emerging body of literature on this subject: first, multidimensional inequality should be a function of the uniform inequality of a multivariate distribution of goods or attributes across people (Kolm, 1977); and second, it should also be a function of the cross-correlation between distributions of goods or attributes in different dimensions (Atkinson and Bourguignon, 1982; Walzer, 1983). While the first intuition has played a major role in the design of fully-fledged multidimensional inequality indices, the second one has only recently received attention (Tsui, 1999); and, so far, multidimensional generalized entropy measures are the only inequality measures known to respect both intuitions. The present paper proposes a general method of designing a wider range of multidimensional inequality indices that also respect both intuitions and illustrates this method by defining two classes of such indices: a generalization of the Gini coefficient, and a generalization of Atkinsons one-dimensional measure of inequality.
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Bibliographic InfoPaper provided by University of Oxford, Department of Economics in its series Economics Series Working Papers with number 1999-W27.
Date of creation: 01 Nov 1999
Date of revision:
multidimensional inequality; multivariate majorization;
Other versions of this item:
- List, C., 1999. "Multidimensional Inequality Measurement: a Proposal," Economics Papers 9927, Economics Group, Nuffield College, University of Oxford.
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- I31 - Health, Education, and Welfare - - Welfare and Poverty - - - General Welfare
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