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On the reconciliation of efficiency and inequality aversion with heterogeneous populations: characterization results

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  • Bart Capéau
  • Erwin Ooghe

Abstract

We characterize a family of r-extended generalized Lorenz dominance quasi-orderings and a family of r-Gini welfare orderings, on the basis of two allegedly "incompatible" axioms for heterogeneous welfare comparisons (Ebert, 1997, Ebert and Moyes, 2003, Shorrocks, 1995), but at the cost of either completeness or separability.

Suggested Citation

  • Bart Capéau & Erwin Ooghe, 2004. "On the reconciliation of efficiency and inequality aversion with heterogeneous populations: characterization results," Public Economics Working Paper Series wpeiahp, Katholieke Universiteit Leuven, Centrum voor Economische Studiën, Working Group Public Economics.
    • Handle: RePEc:wpe:papers:wpeiahp
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    References listed on IDEAS

    as
    1. Ebert, Udo, 1997. "Social Welfare When Needs Differ: An Axiomatic Approach," Economica, London School of Economics and Political Science, vol. 64(254), pages 233-244, May.
    2. Glewwe, Paul, 1991. "Household equivalence scales and the measurement of inequality : Transfers from the poor to the rich could decrease inequality," Journal of Public Economics, Elsevier, vol. 44(2), pages 211-216, March.
    3. Udo Ebert & Patrick Moyes, 2003. "Equivalence Scales Reconsidered," Econometrica, Econometric Society, vol. 71(1), pages 319-343, January.
    4. Bart Chapeau & Erwin Ooghe, 2004. "On Comparing Heterogenous Populations: is there really a Conflict between the Pareto Criterion and Inequality Aversion?," Working Papers of Department of Economics, Leuven ces0407, KU Leuven, Faculty of Economics and Business (FEB), Department of Economics, Leuven.
    5. Udo Ebert, 1999. "Using equivalent income of equivalent adults to rank income distributions," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 16(2), pages 233-258.
    6. Wakker, Peter, 1993. "Additive representations on rank-ordered sets : II. The topological approach," Journal of Mathematical Economics, Elsevier, vol. 22(1), pages 1-26.
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    More about this item

    Keywords

    heterogeneous welfare comparisons; equivalent income functions.;

    JEL classification:

    • 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, Well-Being, and Poverty - - - General Welfare, Well-Being

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