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An Atkinson-Gini Family of Social Evaluation Functions: Theory and Illustration Using Data from the Luxembourg Income Study

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  • Abdelkrim Araar
  • Jean-Yves Duclos

Abstract

We investigate the properties of a family of social evaluation functions and inequality indices which merge the features of the family of Atkinson (1970) and S-Gini (Donaldson and Weymark (1980, 1983), Yitzhaki (1983) and Kakwani (1980)) indices. Income inequality aversion is captured by decreasing marginal utilities, and aversion to rank inequality is captured by rank-dependent ethical weights, thus providing an ethically-flexible dual basis for the assessment of inequality and equity. We demonstrate a few of their interesting properties. We also illustrate their application using data from the Luxembourg Income Study.

Suggested Citation

  • Abdelkrim Araar & Jean-Yves Duclos, 2005. "An Atkinson-Gini Family of Social Evaluation Functions: Theory and Illustration Using Data from the Luxembourg Income Study," LIS Working papers 416, LIS Cross-National Data Center in Luxembourg.
    • Handle: RePEc:lis:liswps:416
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    References listed on IDEAS

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    13. Jean-Yves Duclos & Peter J. Lambert, 2000. "A normative and statistical approach to measuring classical horizontal inequity," Canadian Journal of Economics, Canadian Economics Association, vol. 33(1), pages 87-113, February.
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    3. Abdelkrim Araar, 2007. "Poverty, Inequality and Stochastic Dominance, Theory and Practice: The Case of Burkina Faso," Working Papers PMMA 2007-08, PEP-PMMA.
    4. Peter J. Lambert, 2007. "Positional equity and equal sacrifice: design principles for an EU-wide income tax?," Working Papers 0706, University of Otago, Department of Economics, revised Apr 2007.
    5. Abdelkrim Araar, 2006. "Poverty, Inequality and Stochastic Dominance, Theory and Practice: Illustration with Burkina Faso Surveys," Cahiers de recherche 0634, CIRPEE.

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