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Decomposing bivariate dominance for social welfare comparisons

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Abstract

The lower orthant dominance relation is frequently used for multidimensional social welfare comparisons. Recently it has been shown that bivariate dominance can be characterized in terms of elementary mass transfer operations. We provide an algorithm which explicitly decomposes the mass transfers into welfare differences and inequality differences.

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  • Gottschalk, Tina & Range, Troels Martin & Sudhölter, Peter & Østerdal, Lars Peter, 2015. "Decomposing bivariate dominance for social welfare comparisons," Discussion Papers on Economics 12/2015, University of Southern Denmark, Department of Economics.
    • Handle: RePEc:hhs:sdueko:2015_012
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    Cited by:

    1. M. Azhar Hussain & Nikolaj Siersbæk & Lars Peter Østerdal, 2020. "Multidimensional welfare comparisons of EU member states before, during, and after the financial crisis: a dominance approach," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 55(4), pages 645-686, December.
    2. Michel Grabisch & Hervé Moulin & José Manuel Zarzuelo, 2024. "Professor Peter Sudhölter (1957–2024)," International Journal of Game Theory, Springer;Game Theory Society, vol. 53(2), pages 289-294, June.

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    More about this item

    Keywords

    Social welfare; lower orthant dominance; first order dominance; algorithm;
    All these keywords.

    JEL classification:

    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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