Inequality and quasi-concavity
We discuss a property of quasi-concavity for inequality measures. Defining income distributions as relative frequency functions, this property says that a convex combination of any two given income distributions is weakly more unequal than the least unequal income distribution of the two. The quasi-concavity property is not essential to the idea of inequality comparisons in the sense of not being implied by the fundamental, i.e., Lorenz type, axioms on their own. However, it is shown that all inequality measures considered in the literature—i.e., the class of decomposable inequality measures and the class of normative inequality measures based on a social welfare function of the rank-dependent expected utility form—satisfy the property and even a stronger version). The quasi-concavity property is then shown to greatly reduce the possible inequality patterns over a much studied type of income growth process.
|Date of creation:||Mar 2005|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +32-(0)16-32 67 25
Fax: +32-(0)16-32 67 96
Web page: http://www.econ.kuleuven.be/ewEmail:
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:ete:ceswps:ces0507. 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: (Karla Vander Weyden)
If references are entirely missing, you can add them using this form.