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A Simplified Model for Social Welfare Analysis: An Application to Spain, 1973-74 to 1980-81

  • Ruiz-Castillo, Javier

Most of the literature on income distribution has concentrated on inequality. In this paper the authors introduce a concern for efficiency in a social welfare model. They propose a simple but useful specification which combines three features: (1) the selection of measurement instruments in the relative and the absolute case on the grounds of their properties for applied work; (2) a procedure to make welfare comparisons across households with different needs, in a model in which equivalence scales depend only on household size; and (3) the use of household specific statistical price indices to make intertemporal comparisons in real terms. The methodology is applied to the study of the role of prices and demographic effects in the evolution of the standard of living in Spain from 1973-74 to 198-81. Copyright 1998 by The International Association for Research in Income and Wealth.

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Article provided by International Association for Research in Income and Wealth in its journal Review of Income & Wealth.

Volume (Year): 44 (1998)
Issue (Month): 1 (March)
Pages: 123-41

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Handle: RePEc:bla:revinw:v:44:y:1998:i:1:p:123-41
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  1. Kolm, Serge-Christophe, 1976. "Unequal inequalities. II," Journal of Economic Theory, Elsevier, vol. 13(1), pages 82-111, August.
  2. Ruiz-Castillo, Javier & Peña, Daniel, 1995. "Inflation and inequality bias in the presence of bulk purchases for food and drinks," DES - Working Papers. Statistics and Econometrics. WS 4514, Universidad Carlos III de Madrid. Departamento de Estadística.
  3. Slesnick, Daniel T, 1991. "The Standard of Living in the United States," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 37(4), pages 363-86, December.
  4. Kolm, Serge-Christophe, 1976. "Unequal inequalities. I," Journal of Economic Theory, Elsevier, vol. 12(3), pages 416-442, June.
  5. Lewbel, Arthur, 1989. "Household equivalence scales and welfare comparisons," Journal of Public Economics, Elsevier, vol. 39(3), pages 377-391, August.
  6. Slesnick, Daniel T, 1993. "Gaining Ground: Poverty in the Postwar United States," Journal of Political Economy, University of Chicago Press, vol. 101(1), pages 1-38, February.
  7. John Muellbauer, 1974. "Inequality Measures, Prices and Household Composition," Review of Economic Studies, Oxford University Press, vol. 41(4), pages 493-504.
  8. Stephen P. Jenkins, 1991. "Income Inequality and Living standards: Changes in the 1970s and 1980s," Fiscal Studies, Institute for Fiscal Studies, vol. 12(1), pages 1-28, February.
  9. Blundell,R. W. & Preston,Ian & Walker,Ian (ed.), 1994. "The Measurement of Household Welfare," Cambridge Books, Cambridge University Press, number 9780521451956, November.
  10. Charles Blackorby & David Donaldson & Maria Auersperg, 1981. "A New Procedure for the Measurement of Inequality within and among Population Subgroups," Canadian Journal of Economics, Canadian Economics Association, vol. 14(4), pages 665-85, November.
  11. Javier Ruiz-Castillo, 1995. "Income distribution and social welfare: a review essay," Investigaciones Economicas, Fundación SEPI, vol. 19(1), pages 3-34, January.
  12. Amiel, Yoram & Cowell, Frank A., 1992. "Measurement of income inequality : Experimental test by questionnaire," Journal of Public Economics, Elsevier, vol. 47(1), pages 3-26, February.
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