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Utility and income transfer principles: Interplay and incompatibility

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  • Marc Dubois

    () (Institut Langevin ondes et images - CNRS - Centre National de la Recherche Scientifique - ESPCI Paris - Ecole Superieure de Physique et de Chimie Industrielles de la Ville de Paris - PSL - Université Paris sciences et lettres - UPD7 - Université Paris Diderot - Paris 7 - UPMC - Université Pierre et Marie Curie - Paris 6)

  • Stéphane Mussard

    () (CHROME - Détection, évaluation, gestion des risques CHROniques et éMErgents (CHROME) / Université de Nîmes - UNIMES - Université de Nîmes)

Abstract

In this paper, it is assumed that income does not have a linear correspondence with utility. Consequently, transfers of income and transfers of utility that could improve social welfare are studied. The conditions for the fulfillment of generalized income transfer principles, relevant to any given order of stochastic dominance, are determined. The result relies on Bell polynomials and states that an income transfer principle of any order does not necessarily satisfy the utility transfer principle of the corresponding order.

Suggested Citation

  • Marc Dubois & Stéphane Mussard, 2019. "Utility and income transfer principles: Interplay and incompatibility," Post-Print hal-02145100, HAL.
    • Handle: RePEc:hal:journl:hal-02145100
    DOI: 10.1016/j.mathsocsci.2019.05.001
    Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-02145100
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    References listed on IDEAS

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    More about this item

    Keywords

    Bell polynomial; Inequality aversion; Transfer principle JEL Classification: D63;
    All these keywords.

    JEL classification:

    • D - Microeconomics

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