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Interactions Inequality-Polarization: Characterization Results(*)

Author

Listed:
  • Juan Prieto-Rodríguez

    (Universidad de Oviedo and Instituto de Estudios Fiscales (Spain))

  • Juan Gabriel Rodríguez

    (Universidad Rey Juan Carlos de Madrid and Instituto de Estudios Fiscales (Spain))

  • Rafael Salas

    (Universidad Complutense de Madrid and Instituto de Estudios Fiscales (Spain))

Abstract

. Recent literature stresses the multidimensional nature of income distribution. Two of the most relevant components are inequality and polarization. In this paper, we show the restrictions of keeping simultaneously constant these two aspects whenever the distribution of incomes changes. Distributional change could originate from any economic policy or simply from economic growth. Hence, our result implies an effective restriction for policymakers that they cannot avoid and should not ignore. Our proof embodies a general view of polarization that includes the Wolfson and the Esteban and Ray approaches. The paper also develops other links for the case of controlling only one variable and deducing the implications for the other variable.

Suggested Citation

  • Juan Prieto-Rodríguez & Juan Gabriel Rodríguez & Rafael Salas, "undated". "Interactions Inequality-Polarization: Characterization Results(*)," Working Papers 15-05 Classification-JEL , Instituto de Estudios Fiscales.
    • Handle: RePEc:hpe:wpaper:y:2005:i:15
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    References listed on IDEAS

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    Cited by:

    1. Juan Gabriel Rodríguez, 2004. "Measuring polarization, inequality, welfare and poverty," Economic Working Papers at Centro de Estudios Andaluces E2004/75, Centro de Estudios Andaluces.

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