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EQUITY‐EFFICIENCY PREFERENCES IN Poland AND THE SOVIET UNION: ORDER‐REVERSALS UNDER THE ATKINSON INDEX

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  • James Stooder

Abstract

In this paper, the relation between inequality and welfare index “reversals” is characterized. By the identification of these reversals, upper and lower bounds are established for Atkinson's parameter of inequality aversion. This exercise shows that a level of inequality aversion high enough to show welfare improving over the “egalitarian decline” of 1978–81 in Poland is too high to show improvement over the “elitist growth” of 1981–86 in the Soviet Union. However, even if the lower bound of inequality aversion is assumed, plausible projections on Soviet growth and distribution still show social welfare declining.

Suggested Citation

  • James Stooder, 1991. "EQUITY‐EFFICIENCY PREFERENCES IN Poland AND THE SOVIET UNION: ORDER‐REVERSALS UNDER THE ATKINSON INDEX," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 37(3), pages 287-299, September.
    • Handle: RePEc:bla:revinw:v:37:y:1991:i:3:p:287-299
    DOI: 10.1111/j.1475-4991.1991.tb00372.x
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