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Inequality-Preserving Changes

In: Comparing Income Distributions

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Abstract

Chapter 4 discusses the fact that a given numerical value of an inequality measure can be associated with a range of distributions. Just as different distributions can have the same arithmetic mean, it is possible for higher moments of different distributions to be equal. The chapter considers the problem of distributing a fixed amount of income among a given number of people, such that inequality takes a specified value. The issue basically corresponds to the well-known fact that simultaneous equations admit of many solutions where the number of variables exceeds that of equations (constraints). However, the approach examines cases where there are just one or two degrees of freedom, clarifying the resulting range of distributions. The properties of simultaneous disequalising and equalising transfers are discussed.

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  • ., 2023. "Inequality-Preserving Changes," Chapters, in: Comparing Income Distributions, chapter 4, pages 75-90, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:22094_4
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    Keywords

    Economics and Finance;

    Statistics

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