Using equivalent income of equivalent adults to rank income distributions
The paper proposes the consistent and rigorous use of equivalence scales for households of different size. Equivalence scales are employed for deriving the income of an equivalent adult representing the household and for weighting the different household types. The proceeding takes into account the possibilities and the needs of different household types at the same time and seems to be adequate if income distributions are to be compared in terms of social welfare or inequality. The approach allows to define and to investigate the usual concepts (Lorenz curve, Lorenz dominance, social welfare function, progressive transfers etc.) for heterogeneous populations. They can be interpreted in an obvious way, and the results, well known for homogeneous populations, can be generalized. Furthermore, some unpleasant and unsatisfactory paradoxa or impossibility results, which can be found in the literature, vanish in the framework considered.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 16 (1999)
Issue (Month): 2 ()
|Note:||Received: 7 March 1997/Accepted: 4 November 1997|
|Contact details of provider:|| Web page: http://link.springer.de/link/service/journals/00355/index.htm|
|Order Information:||Web: http://link.springer.de/orders.htm|
When requesting a correction, please mention this item's handle: RePEc:spr:sochwe:v:16:y:1999:i:2:p:233-258. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla)or (Christopher F Baum)
If references are entirely missing, you can add them using this form.