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The Gini coefficient: Majority voting and social welfare

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  • Rodríguez, Juan Gabriel
  • Salas, Rafael

Abstract

Majority voting and social evaluation functions are the main alternatives proposed in the literature for aggregating individual preferences. Despite these being very different, this paper shows that the ranking of income distributions, symmetric under the same transformation, by S-Gini consistent social evaluation functions and majority voting coincide if and only if the inequality index under consideration is the Gini coefficient. In this case, we show that the equally distributed equivalent income is equal to the median of the distribution. In addition, we find that the Gini coefficient is just an affine function of the median–mean ratio.

Suggested Citation

  • Rodríguez, Juan Gabriel & Salas, Rafael, 2014. "The Gini coefficient: Majority voting and social welfare," Journal of Economic Theory, Elsevier, vol. 152(C), pages 214-223.
    • Handle: RePEc:eee:jetheo:v:152:y:2014:i:c:p:214-223
    DOI: 10.1016/j.jet.2014.04.012
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    More about this item

    Keywords

    Social evaluation function; The Gini coefficient; Majority voting; Median–mean ratio; Symmetric distribution;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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