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Inequality and envy

In: Inequality and Opportunity: Papers from the Second ECINEQ Society Meeting

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  • Frank Cowell
  • Udo Ebert

Abstract

Our purpose is to examine the “envy” within the context of income inequality measurement. We use a simple axiomatic structure that takes into account “envy” in the income distribution. The concept of envy incorporated here concerns the distance of each person's income from his or her immediately richer neighbour. We derive two classes of inequality indices – absolute and relative. The envy concept is shown to be similar to justice concepts based on income relativities. This is the first time a complete characterisation has been provided for envy-related inequality.

Suggested Citation

  • Frank Cowell & Udo Ebert, 2008. "Inequality and envy," Research on Economic Inequality, in: Inequality and Opportunity: Papers from the Second ECINEQ Society Meeting, pages 37-47, Emerald Group Publishing Limited.
    • Handle: RePEc:eme:reinzz:s1049-2585(08)16002-1
    DOI: 10.1016/S1049-2585(08)16002-1
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    References listed on IDEAS

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    1. Arnsperger, Christian, 1994. "Envy-Freeness and Distributive Justice," Journal of Economic Surveys, Wiley Blackwell, vol. 8(2), pages 155-186, June.
    2. Yitzhaki, Shlomo, 1982. "Relative deprivation and economic welfare," European Economic Review, Elsevier, vol. 17(1), pages 99-113.
    3. Frank Cowell & Udo Ebert, 2004. "Complaints and inequality," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 23(1), pages 71-89, August.
    4. Armin Falk & Markus Knell, 2004. "Choosing the Joneses: Endogenous Goals and Reference Standards," Scandinavian Journal of Economics, Wiley Blackwell, vol. 106(3), pages 417-435, October.
    5. Bossert, Walter & D'Ambrosio, Conchita, 2006. "Reference groups and individual deprivation," Economics Letters, Elsevier, vol. 90(3), pages 421-426, March.
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    More about this item

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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