On bounded dominance criteria
A well-known criterion to make heterogeneous welfare comparisons is Atkinson and BourguignonÂ’s (1987) sequential generalized Lorenz dominance (SGLD) criterion. Recently, Fleurbaey, HagnerÃ© and Trannoy (2003) convincingly argue that it contains unreasonable household utility profiles and suggest to put (lower and upper) bounds on the needs of the different household types. First, we generalize Atkinson and BourguignonÂ’s SGLD criterion, by introducing lower bounds in the household utility profiles. Second, we propose a new SGLD criterion by introducing upper bounds in a similar way. Third, we impose lower and upper bounds simultaneously and obtain a criterion which is intermediate between EbertÂ’s (1999) equivalence scale weighted approach and Atkinson and BourguignonÂ’s (1987) SGLD approach.
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- Fleurbaey, M. & Hagnere, C. & Trannoy, A., 1998.
"Welfare Comparisons with Bounded Equivalence Scales,"
9823, Paris X - Nanterre, U.F.R. de Sc. Ec. Gest. Maths Infor..
- Fleurbaey, Marc & Hagnere, Cyrille & Trannoy, Alain, 2003. "Welfare comparisons with bounded equivalence scales," Journal of Economic Theory, Elsevier, vol. 110(2), pages 309-336, June.
- M. Fleurbaey & C. Hagneré & A. Trannoy, 1998. "Welfare comparisons with bounded equivalence scales," THEMA Working Papers 98-23, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
- Jenkins, Stephen P & Lambert, Peter J, 1993. "Ranking Income Distributions When Needs Differ," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 39(4), pages 337-56, December.
- Anthony Shorrocks, 2004. "Inequality and welfare evaluation of heterogeneous income distributions," Journal of Economic Inequality, Springer, vol. 2(3), pages 193-218, July.
- Peter J. Lambert & Xavier Ramos, 2001.
"Welfare comparisons: sequential procedures for heterogenous populations,"
wp0114, Department of Applied Economics at Universitat Autonoma of Barcelona.
- Lambert, Peter J & Ramos, Xavier, 2002. "Welfare Comparisons: Sequential Procedures for Heterogeneous Populations," Economica, London School of Economics and Political Science, vol. 69(276), pages 549-62, November.
- Peter Lambert & Xavi Ramos, 2001. "Welfare Comparisons: Sequential Procedures for Heterogeneous Population," CESifo Working Paper Series 519, CESifo Group Munich.
- Atkinson, A B, 1992. "Measuring Poverty and Differences in Family Composition," Economica, London School of Economics and Political Science, vol. 59(233), pages 1-16, February.
- Chambaz, Christine & Maurin, Eric, 1998. "Atkinson and Bourguignon's Dominance Criteria: Extended and Applied to the Measurement of Poverty in France," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 44(4), pages 497-513, December.
- Udo Ebert, 1999. "Using equivalent income of equivalent adults to rank income distributions," Social Choice and Welfare, Springer, vol. 16(2), pages 233-258.
- Shorrocks, Anthony, 2004. "Inequality and Welfare Evaluation of Heterogeneous Income Distributions," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
- Bourguignon, Francois, 1989. "Family size and social utility : Income distribution dominance criteria," Journal of Econometrics, Elsevier, vol. 42(1), pages 67-80, September.
- Patrick Moyes, 1999. "Comparaisons de distributions hétérogènes et critères de dominance," Économie et Prévision, Programme National Persée, vol. 138(2), pages 125-146.
- Udo Ebert & Patrick Moyes, 2003. "Equivalence Scales Reconsidered," Econometrica, Econometric Society, vol. 71(1), pages 319-343, January.
- Ebert, Udo, 1997. "Social Welfare When Needs Differ: An Axiomatic Approach," Economica, London School of Economics and Political Science, vol. 64(254), pages 233-44, May.
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