Between-Group Pigou-Dalton Transfers
This paper introduces the concept of Pigou-Dalton transfers between populations of income receivers. Gini's mean difference and Dagum's Gini index between populations are axiomatically derived in order to gauge the impact of within- and between-group Pigou-Dalton transfers on Dagum's measure. We show its sensitiveness for any given transfer in the sense that inequality-reducing transfers are captured when transfers occur from higher-income donors to lower-income recipients, which belong to two distinct populations. Accordingly, we point out the implications of between-group transfers on: the ordering of multivariate majorization, the multivariate stochastic dominance in the sense of multivariate Lorenz ordering and zonotope inclusions, the Gini decomposition, and on the use of the generalized entropy index.
|Date of creation:||Mar 2007|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: 00352 / 58 58 55 - 1
Fax: 00352 / 58 58 55 - 700
Web page: http://iriss.ceps.lu/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Rolf Aaberge & Steinar Bjerve & Kjell Doksum, 2005.
"Decomposition of rank-dependent measures of inequality by subgroups,"
Metron - International Journal of Statistics,
Dipartimento di Statistica, Probabilità e Statistiche Applicate - University of Rome, vol. 0(3), pages 493-503.
- Rolf Aaberge & Steinar Bjerve & Kjell Doksum, 2005. "Decomposition of Rank-Dependent Measures of Inequality by Subgroups," Discussion Papers 437, Statistics Norway, Research Department.
- Pyatt, Graham, 1976. "On the Interpretation and Disaggregation of Gini Coefficients," Economic Journal, Royal Economic Society, vol. 86(342), pages 243-55, June.
- Gajdos, Thibault, 2004.
"Single crossing Lorenz curves and inequality comparisons,"
Mathematical Social Sciences,
Elsevier, vol. 47(1), pages 21-36, January.
- Thibault Gajdos, 2004. "Single Crossing Lorenz Curves and Inequality Comparisons," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00086028, HAL.
- Chateauneuf, Alain & Gajdos, Thibault & Wilthien, Pierre-Henry, 2002.
"The Principle of Strong Diminishing Transfer,"
Journal of Economic Theory,
Elsevier, vol. 103(2), pages 311-333, April.
- Chateauneuf, A. & Gajdos, T. & Wilthien, P.-H., 1999. "The Principle of Strong Kiminishing Transfer," Papiers d'Economie MathÃ©matique et Applications 1999-96, UniversitÃ© PanthÃ©on-Sorbonne (Paris 1).
- Alain Chateauneuf & Thibault Gajdos & Pierre-Henry Wilthien, 2002. "The Principle of Strong Diminishing Transfer," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00085936, HAL.
- Dagum, Camilo, 1980. "Inequality Measures between Income Distributions with Applications," Econometrica, Econometric Society, vol. 48(7), pages 1791-1803, November.
- Jean-Yves Duclos & Joan Esteban & Debraj Ray, 2003.
"Polarization: Concepts, Measurement, Estimation,"
46, Barcelona Graduate School of Economics.
- Yitzhaki, Shlomo & Lerman, Robert I, 1991. "Income Stratification and Income Inequality," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 37(3), pages 313-29, September.
- BOSSERT, Walter & D'AMBROSIO, Conchita, 2004.
"Reference Groups and Individual Deprivation,"
Cahiers de recherche
2004-10, Universite de Montreal, Departement de sciences economiques.
- Fields, Gary S. & Ok, Efe A., 1996. "The Meaning and Measurement of Income Mobility," Journal of Economic Theory, Elsevier, vol. 71(2), pages 349-377, November.
- Gleb A. Koshevoy & Karl Mosler, 2007. "Multivariate Lorenz dominance based on zonoids," AStA Advances in Statistical Analysis, Springer, vol. 91(1), pages 57-76, March.
- Bourguignon, Francois, 1979. "Decomposable Income Inequality Measures," Econometrica, Econometric Society, vol. 47(4), pages 901-20, July.
- Marc Fleurbaey, 2006. "To Envy or to be Envied? Refinements of No-Envy fot the Compensation Problem," IDEP Working Papers 0603, Institut d'economie publique (IDEP), Marseille, France, revised Jul 2006.
- Cowell, Frank A., 1980. "Generalized entropy and the measurement of distributional change," European Economic Review, Elsevier, vol. 13(1), pages 147-159, January.
- Chakravarty, Satya Ranjan & Dutta, Bhaskar, 1987. "A note on measures of distance between imcome distributions," Journal of Economic Theory, Elsevier, vol. 41(1), pages 185-188, February.
- Ebert, Udo, 1984. "Measures of distance between income distributions," Journal of Economic Theory, Elsevier, vol. 32(2), pages 266-274, April.
- Gleb Koshevoy, 1997. "The Lorenz zonotope and multivariate majorizations," Social Choice and Welfare, Springer, vol. 15(1), pages 1-14.
- Silber, Jacques, 1989. "Factor Components, Population Subgroups and the Computation of the Gini Index of Inequality," The Review of Economics and Statistics, MIT Press, vol. 71(1), pages 107-15, February.
- Dagum, Camilo, 1987. "Measuring the Economic Affluence between Populations of Income Receivers," Journal of Business & Economic Statistics, American Statistical Association, vol. 5(1), pages 5-12, January.
- Shorrocks, A F, 1980. "The Class of Additively Decomposable Inequality Measures," Econometrica, Econometric Society, vol. 48(3), pages 613-25, April.
- Fleurbaey, Marc & Michel, Philippe, 2001. "Transfer principles and inequality aversion, with an application to optimal growth," Mathematical Social Sciences, Elsevier, vol. 42(1), pages 1-11, July.
When requesting a correction, please mention this item's handle: RePEc:irs:iriswp:2007-02. 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: (Philippe Van Kerm)
If references are entirely missing, you can add them using this form.