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A model of social welfare improving transfers

Author

Listed:
  • Brice Magdalou

    (CEE-M - Centre d'Economie de l'Environnement - Montpellier - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro - Montpellier SupAgro - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement)

Abstract

This paper provides a generalization of the Hardy-Littlewood-Polya (HLP) Theorem in the following discrete framework: a distribution counts the number of persons having each possible individual outcome –assumed to be finitely divisible– and social welfare improving transfers have the structure of a discrete cone. The generalization is abstract in the sense that individual outcomes can be unidimensional or multidimensional, each dimension can be cardinal or ordinal and no further specification is required for the transfers. It follows that most of the results in the literature, applied to discrete distributions and comparable to the HLP Theorem, are corollaries of our theorem. In addition, our model sheds new light on some surprising results in the literature on social deprivation and, in decision-making under risk, provides new arguments on the key role of the expected utility model.

Suggested Citation

  • Brice Magdalou, 2021. "A model of social welfare improving transfers," Post-Print hal-03287960, HAL.
    • Handle: RePEc:hal:journl:hal-03287960
    Note: View the original document on HAL open archive server: https://hal.inrae.fr/hal-03287960v1
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    File URL: https://hal.inrae.fr/hal-03287960v1/document
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    Cited by:

    1. Nicolas Gravel & Brice Magdalou & Patrick Moyes, 2021. "Ranking distributions of an ordinal variable," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 71(1), pages 33-80, February.
    2. Ramses H. Abul Naga, 2022. "The minimal Hilbert basis of the Hammond order cone," Economic Theory Bulletin, Springer;Society for the Advancement of Economic Theory (SAET), vol. 10(2), pages 191-215, October.
    3. John A. Weymark, 2020. "Commentary on “From unidimensional to multidimensional inequality: a review”," METRON, Springer;Sapienza Università di Roma, vol. 78(1), pages 55-59, April.
    4. Bertoli-Barsotti, Lucio & Gagolewski, Marek & Siudem, Grzegorz & Żogała-Siudem, Barbara, 2024. "Gini-stable Lorenz curves and their relation to the generalised Pareto distribution," Journal of Informetrics, Elsevier, vol. 18(2).
    5. Gaëlle Aymeric & Brice Magdalou, 2025. "Does the Gini index represent people’s views on inequality?," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 23(3), pages 637-665, September.
    6. Aouani, Zaier & Chateauneuf, Alain, 2020. "Multidimensional inequality and inframodular order," Journal of Mathematical Economics, Elsevier, vol. 90(C), pages 74-79.

    More about this item

    Keywords

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    JEL classification:

    • C02 - Mathematical and Quantitative Methods - - General - - - Mathematical Economics
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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