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Inequality and Envy

Author

Listed:
  • Frank A Cowell
  • Udo Ebert

Abstract

Using a simple axiomatic structure we characterise two classes ofinequality indices - absolute and relative - that take into account "envy"in the income distribution. The concept of envy incorporated hereconcerns the distance of each person's income from his or herimmediately richer neighbour. This is shown to be similar to justiceconcepts based on income relativities.

Suggested Citation

  • Frank A Cowell & Udo Ebert, 2006. "Inequality and Envy," STICERD - Distributional Analysis Research Programme Papers 88, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
    • Handle: RePEc:cep:stidar:88
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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. 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.
    3. 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.
    4. Yitzhaki, Shlomo, 1982. "Relative deprivation and economic welfare," European Economic Review, Elsevier, vol. 17(1), pages 99-113.
    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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    2. Mamunuru, Sai Madhurika & Shrivastava, Anand & Jayadev, Arjun, 2025. "Social networks and experienced inequality," Journal of Economic Behavior & Organization, Elsevier, vol. 229(C).

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    JEL classification:

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

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