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Monotonicity and the Pareto Principle (Now published in Economic Letters 45 (1994), pp.447-450)

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  • Yoram Amiel
  • Frank A Cowell

Abstract

We examine the implications of three similar criteria that are commonly used in welfare economics and the analysis of inequality and poverty - income dominance, monotonicity and the Pareto principle - within the context of income-distribution comparisons. We show that whilst there is a simple logical relationship between the first two criteria, the third is neither implied by nor implies the other two unless an assumption of individual indifference to income distribution is made.

Suggested Citation

  • Yoram Amiel & Frank A Cowell, 1993. "Monotonicity and the Pareto Principle (Now published in Economic Letters 45 (1994), pp.447-450)," STICERD - Distributional Analysis Research Programme Papers 06, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
    • Handle: RePEc:cep:stidar:06
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    References listed on IDEAS

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    1. Hochman, Harold M & Rodgers, James D, 1969. "Pareto Optimal Redistribution," American Economic Review, American Economic Association, vol. 59(4), pages 542-557, Part I Se.
    2. Sen, Amartya K, 1976. "Poverty: An Ordinal Approach to Measurement," Econometrica, Econometric Society, vol. 44(2), pages 219-231, March.
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