Inequality and Welfare Evaluation of Heterogeneous Income Distributions
AbstractThis paper establishes the principles which should govern the welfare and inequality analysis of heterogeneous income distributions. Two basic criteria?the ?equity preference? condition and the ?compensation principle??are shown to be fundamentally incompatible. The paper favours the latter, thereby vindicating the traditional method of dealing with heterogeneous samples. However, inequality and welfare comparisons will usually be well defined only if equivalent incomes are obtained using constant scale factors; and researchers will need to distinguish clearly between inequality of nominal incomes and inequality of living standards. Furthermore, household observations must always be weighted according to family size.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by World Institute for Development Economic Research (UNU-WIDER) in its series Working Paper Series with number UNU-WIDER Research Paper RP2004/01.
Length: 38 pages
Date of creation: 2004
Date of revision:
income distribution; inequality; living standards; needs;
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Cormac O'Dea & Ian Preston, 2012. "The distributional impact of public spending in the UK," IFS Working Papers W12/06, Institute for Fiscal Studies.
- John Creedy & Ross Guest, 2007. "Discounting and the Time Preference Rate: An Introduction," Department of Economics - Working Papers Series 993, The University of Melbourne.
- Peter J. Lambert & S. Subramanian, 2012. "Disparities in Socio-Economic Outcomes: Some Positive Propositions and their Normative Implications," Working Papers 281, ECINEQ, Society for the Study of Economic Inequality.
- John Creedy & Cath Sleeman, 2005.
"Adult equivalence scales, inequality and poverty,"
New Zealand Economic Papers,
Taylor & Francis Journals, vol. 39(1), pages 51-81.
- Sreenivasan Subramanian, 2011. "Inter-group Disparities in the Distributional Analysis of Human Development: Concepts, Measurement, and Illustrative Applications," The Review of Black Political Economy, Springer, vol. 38(1), pages 27-52, March.
- Patrick MOYES ( GREThA, CNRS, UMRS 5113) & Nicolas GRAVEL (AMSE (GREQAM) et Aix-Marseille University), 2011.
"Utilitarianism or Welfarism: Does it Make a Difference?,"
Cahiers du GREThA
2011-30, Groupe de Recherche en Economie Théorique et Appliquée.
- Nicolas Gravel & Patrick Moyes, 2013. "Utilitarianism or welfarism: does it make a difference?," Social Choice and Welfare, Springer, vol. 40(2), pages 529-551, February.
- Nicolas Gravel & Patrick Moyes, 2011. "Utilitarianism or Welfarism: Does it Make a Difference?," Working Papers halshs-00634010, HAL.
- Capeau, Bart & Ooghe, Erwin, 2007. "On comparing heterogeneous populations: Is there really a conflict between welfarism and a concern for greater equality in living standards?," Mathematical Social Sciences, Elsevier, vol. 53(1), pages 1-28, January.
- Ooghe, Erwin & Lambert, Peter, 2006.
"On bounded dominance criteria,"
Mathematical Social Sciences,
Elsevier, vol. 52(1), pages 15-30, July.
- Erwin Ooghe & Peter J. Lambert, 2005. "On Bounded Dominance Criteria," University of Oregon Economics Department Working Papers 2005-6, University of Oregon Economics Department, revised 01 May 2005.
- Rolf Aaberge & Audun Langørgen & Petter Lindgren, 2013. "The distributional impact of public services in," Discussion Papers 746, Research Department of Statistics Norway.
- Marc Fleurbaey & Cyrille Hagneré & 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.
- John Creedy, 2013.
"Alternative Distributions for Inequality and Poverty Comparisons,"
Treasury Working Paper Series
13/11, New Zealand Treasury.
- Creedy, John, 2013. "Alternative Distributions for Inequality and Poverty Comparisons," Working Paper Series 2851, Victoria University of Wellington, Chair in Public Finance.
- repec:old:wpaper:331 is not listed on IDEAS
- Muller, Christophe & Trannoy, Alain, 2012. "Multidimensional inequality comparisons: A compensation perspective," Journal of Economic Theory, Elsevier, vol. 147(4), pages 1427-1449.
- Ooghe, Erwin, 2007.
"Sequential dominance and weighted utilitarianism,"
Elsevier, vol. 94(2), pages 208-212, February.
- Udo Ebert, 2010. "Dominance criteria for welfare comparisons: using equivalent income to describe differences in needs," Theory and Decision, Springer, vol. 69(1), pages 55-67, July.
- Udo Ebert, 2011. "The redistribution of income when needs differ," Working Papers V-331-11, University of Oldenburg, Department of Economics, revised Feb 2011.
- John Creedy & Ross Guest, 2006.
"Population Ageing And Intertemporal Consumption: Representative Agent Versus Social Planner,"
Department of Economics - Working Papers Series
972, The University of Melbourne.
- Creedy, John & Guest, Ross, 2008. "Population ageing and intertemporal consumption: Representative agent versus social planner," Economic Modelling, Elsevier, vol. 25(3), pages 485-498, May.
- Luis José Imedio Olmedo & Encarnación Macarena Parrado Gallardo & María Dolores Sarrión Gavilán, 2005. "Horizontal equity, equal progression: an utilitarian approach," Hacienda Pública Española, IEF, vol. 174(3), pages 87-115, September.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bruck Tadesse).
If references are entirely missing, you can add them using this form.