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Resource Egalitarianism with a Dash of Efficiency

  • SPRUMONT, Yves

We study the problem of defining inequality-averse social orderings over the space of allocations in a multi-commodity environment where individuals differ only in their preferences. We formulate notions of egalitarianism based on the axiom that any dominance between the consumption bundles of two individuals should be reduced. This Dominance Aversion requirement is compatible with Consensus, a weak version of the Pareto principle saying that an allocation y is better than x whenever everybody finds that everyone's bundle at y is better than at x. We identify two families of multidimensional leximin orderings satisfying Dominance Aversion and Consensus. We also discuss weaker forms of egalitarianism based on a new definition of multidimensional Lorenz dominance.

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Paper provided by Centre interuniversitaire de recherche en économie quantitative, CIREQ in its series Cahiers de recherche with number 03-2007.

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Length: 28 pages
Date of creation: 2007
Date of revision:
Handle: RePEc:mtl:montec:03-2007
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  1. M. Fleurbaey & A. Trannoy, 2000. "The Impossibility of a Paretian Egalitarian," THEMA Working Papers 2000-26, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
  2. FLEURBAEY, Marc & MANIQUET, François, . "Fair social orderings," CORE Discussion Papers RP -1995, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  3. Marc Fleurbaey, 2001. "The Pazner-Schmeidler Social Ordering: A Defense," Working Papers 328, Bielefeld University, Center for Mathematical Economics.
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  6. Pazner, Elisha A & Schmeidler, David, 1978. "Egalitarian Equivalent Allocations: A New Concept of Economic Equity," The Quarterly Journal of Economics, MIT Press, vol. 92(4), pages 671-87, November.
  7. Thibault Gajdos & John A. Weymark, 2003. "Multidimensional Generalized Gini Indices," Vanderbilt University Department of Economics Working Papers 0311, Vanderbilt University Department of Economics, revised Jul 2003.
  8. Hammond, Peter J, 1976. "Equity, Arrow's Conditions, and Rawls' Difference Principle," Econometrica, Econometric Society, vol. 44(4), pages 793-804, July.
  9. François Maniquet, 2007. "Social orderings and the evaluation of public policy," Revue d'économie politique, Dalloz, vol. 117(1), pages 37-60.
  10. Marc Fleurbaey, 2004. "Two Criteria for Social Decisions," Economics Series Working Papers 2004-W27, University of Oxford, Department of Economics.
  11. Shorrocks, Anthony F, 1983. "Ranking Income Distributions," Economica, London School of Economics and Political Science, vol. 50(197), pages 3-17, February.
  12. John A. Weymark, 2003. "The Normative Approach to the Measurement of Multidimensional Inequality," Vanderbilt University Department of Economics Working Papers 0314, Vanderbilt University Department of Economics, revised Jan 2004.
  13. Kolm, Serge-Christophe, 1977. "Multidimensional Egalitarianisms," The Quarterly Journal of Economics, MIT Press, vol. 91(1), pages 1-13, February.
  14. Hausman, Daniel & McPherson, Michael, 1994. "Preference, Belief, and Welfare," American Economic Review, American Economic Association, vol. 84(2), pages 396-400, May.
  15. Gleb Koshevoy, 1997. "The Lorenz zonotope and multivariate majorizations," Social Choice and Welfare, Springer, vol. 15(1), pages 1-14.
  16. Atkinson, Anthony B & Bourguignon, Francois, 1982. "The Comparison of Multi-Dimensioned Distributions of Economic Status," Review of Economic Studies, Wiley Blackwell, vol. 49(2), pages 183-201, April.
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