Ranking income distributions using the Geometric Mean and a related general measure
AbstractThis paper illustrates the usefulness of a generalized welfare measure for ranking income distributions that are unordered by stochastic dominance and illuminates the properties of the measure. Other welfare criteria such as the arithmetic mean and Rawls criteria are special cases of this generalized measure. This generalized welfare measure illustrates that use of these special cases involves a subjective judgment by the observer of the relative importance of equity preference to efficiency preference.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 10171.
Date of creation: Jul 1996
Date of revision:
Publication status: Published in Southern Economic Journal 1.63(1996): pp. 69-75
Find related papers by JEL classification:
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- O5 - Economic Development, Technological Change, and Growth - - Economywide Country Studies
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