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Welfare, inequality and the transformation of incomes the case of weighted income distributions

  • Udo Ebert
  • Patrick Moyes

The paper extends previous results on welfare and inequality comparisons when incomes are weighted and the weights are not necessarily equal across the statistical units. A flexible approach to inequality measurement is allowed which admits as particular cases the relative and absolute views. We next identify the individualistic and symmetric transformations that generate and preserve the welfare and inequality rankings of income distributions. The former results fill a gap between the theoretical analysis and the practical measurement of welfare and inequality, while the latter results provide insights for the analysis of redistributive policies. Copyright Springer-Verlag 2002

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File URL: http://hdl.handle.net/10.1007/BF03052499
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Article provided by Springer in its journal Journal of Economics.

Volume (Year): 9 (2002)
Issue (Month): 1 (December)
Pages: 9-50

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Handle: RePEc:kap:jeczfn:v:9:y:2002:i:1:p:9-50
Contact details of provider: Web page: http://www.springerlink.com/link.asp?id=108909

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  1. Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
  2. Udo Ebert & Patrick Moyes, 2000. "Adjusting Incomes for Needs: Can One Avoid Equivalence Scales?," Econometric Society World Congress 2000 Contributed Papers 0917, Econometric Society.
  3. Moyes Patrick, 1994. "Inequality Reducing and Inequality Preserving Transformations of Incomes: Symmetric and Individualistic Transformations," Journal of Economic Theory, Elsevier, vol. 63(2), pages 271-298, August.
  4. Harrison, Elizabeth & Seidl, Christian, 1994. " Perceptional Inequality and Preferential Judgements: An Empirical Examination of Distributional Axioms," Public Choice, Springer, vol. 79(1-2), pages 61-81, April.
  5. Moyes, Patrick, 1992. "The through-time redistributive effect of income taxation : The intermediate inequality view," Mathematical Social Sciences, Elsevier, vol. 24(1), pages 59-71, August.
  6. Ebert, Udo & Moyes, Patrick, 2000. "Consistent Income Tax Structures When Households Are Heterogeneous," Journal of Economic Theory, Elsevier, vol. 90(1), pages 116-150, January.
  7. Jakobsson, Ulf, 1976. "On the measurement of the degree of progression," Journal of Public Economics, Elsevier, vol. 5(1-2), pages 161-168.
  8. 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.
  9. Udo Ebert, 1999. "Using equivalent income of equivalent adults to rank income distributions," Social Choice and Welfare, Springer, vol. 16(2), pages 233-258.
  10. Besley, Timothy J & Preston, I P, 1988. "Invariance and the Axiomatics of Income Tax Progression: A Comment," Bulletin of Economic Research, Wiley Blackwell, vol. 40(2), pages 159-63, April.
  11. Shorrocks, Anthony F, 1983. "Ranking Income Distributions," Economica, London School of Economics and Political Science, vol. 50(197), pages 3-17, February.
  12. Dasgupta, Partha & Sen, Amartya & Starrett, David, 1973. "Notes on the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 6(2), pages 180-187, April.
  13. Moyes, Patrick, 1987. "A new concept of Lorenz domination," Economics Letters, Elsevier, vol. 23(2), pages 203-207.
  14. Bossert, Walter & Pfingsten, Andreas, 1990. "Intermediate inequality: concepts, indices, and welfare implications," Mathematical Social Sciences, Elsevier, vol. 19(2), pages 117-134, April.
  15. Coral del RÎo & Javier Ruiz-Castillo, 2000. "Intermediate inequality and welfare," Social Choice and Welfare, Springer, vol. 17(2), pages 223-239.
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