IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

Measuring Opportunity Inequality with Monetary Transfers

  • Laurence Kranich

In this paper I consider the problem of measuring opportunity inequality when monetary transfers are possible. First, I consider the case in which agents have homogeneous preferences, as in the previous literature, and I then propose an extension to the heterogeneous case. In both, I identify an appropriate egalitarian benchmark relative to which inequality can be measured, and I establish that this yields a theory of measurement analogous to that of income inequality. This overcomes a difficulty recently reported Ok (1997). Finally, I discuss the benchmark notion of equal shadow wealth as a new concept of fairness. The results of the paper are immediately applicable to the measurement of multidimensional economic inequality including economies with indivisible goods.

To our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.

Paper provided by University at Albany, SUNY, Department of Economics in its series Discussion Papers with number 99-02.

in new window

Date of creation: 1999
Date of revision:
Handle: RePEc:nya:albaec:99-02
Contact details of provider: Postal:
Department of Economics, BA 110 University at Albany State University of New York Albany, NY 12222 U.S.A.

Phone: (518) 442-4735
Fax: (518) 442-4736

Order Information: Postal: Department of Economics, BA 110 University at Albany State University of New York Albany, NY 12222 U.S.A.
Web: Email:

References listed on IDEAS
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.:

as in new window
  1. Herrero, Carmen & Iturbe-Ormaetxe, Inigo & Nieto, Jorge, 1998. "Ranking opportunity profiles on the basis of the common opportunities," Mathematical Social Sciences, Elsevier, vol. 35(3), pages 273-289, May.
  2. Jorge Nieto & IÓigo Iturbe-Ormaetxe, 1995. "On fair allocations and monetary compensations," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 7(1), pages 125-138.
  3. Diamantaras, Dimitrios & Thomson, William, 1989. "A refinement and extension of the no-envy concept," Economics Letters, Elsevier, vol. 30(2), pages 103-107, August.
  4. Roemer, J.E., 1992. "A Pragmatic Theory of Responsibility for the Egalitarian Planner," Papers 391, California Davis - Institute of Governmental Affairs.
  5. FLEURBAEY, Marc & MANIQUET, François, . "Compensation and responsibility," CORE Discussion Papers RP 2284, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  6. Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
  7. Fields, Gary S & Fei, John C H, 1978. "On Inequality Comparisons," Econometrica, Econometric Society, vol. 46(2), pages 303-16, March.
  8. Efe A. Ok & Laurence Kranich, 1998. "The measurement of opportunity inequality: a cardinality-based approach," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 15(2), pages 263-287.
  9. Thomson, William, 1982. "An informationally efficient equity criterion," Journal of Public Economics, Elsevier, vol. 18(2), pages 243-263, July.
  10. Kristof Bismans & Luc Lauwers & Erwin Ooghe, 2006. "A consistent multidimensional Pigou-Dalton transfer principle," Working Papers Department of Economics ces0620, KU Leuven, Faculty of Economics and Business, Department of Economics.
  11. William Thomson, 2007. "Fair Allocation Rules," RCER Working Papers 539, University of Rochester - Center for Economic Research (RCER).
  12. Fleurbaey Marc, 1995. "Three Solutions for the Compensation Problem," Journal of Economic Theory, Elsevier, vol. 65(2), pages 505-521, April.
  13. Laurence Kranich, 1996. "Equitable opportunities in economic environments," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 14(1), pages 57-64.
  14. Ok, E.A., 1996. "On Opportunity Inequality Measurement," Working Papers 96-24, C.V. Starr Center for Applied Economics, New York University.
  15. Kranich, Laurence, 1996. "Equitable Opportunities: An Axiomatic Approach," Journal of Economic Theory, Elsevier, vol. 71(1), pages 131-147, October.
  16. John A. Weymark, 2001. "Generalized Gini Indices of Equality of Opportunity," Vanderbilt University Department of Economics Working Papers 0114, Vanderbilt University Department of Economics, revised Jun 2002.
  17. Peragine, Vitorocco, 1999. " The Distribution and Redistribution of Opportunity," Journal of Economic Surveys, Wiley Blackwell, vol. 13(1), pages 37-69, February.
  18. Savaglio, Ernesto & Vannucci, Stefano, 2007. "Filtral preorders and opportunity inequality," Journal of Economic Theory, Elsevier, vol. 132(1), pages 474-492, January.
  19. Vitorocco Peragine, . "Measuring and Implementing Equality of Opportunity for Income," Discussion Papers 98/11, Department of Economics, University of York.
  20. Dasgupta, Partha & Sen, Amartya & Starrett, David, 1973. "Notes on the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 6(2), pages 180-187, April.
  21. Herrero, Carmen, 1997. "Equitable opportunities: an extension," Economics Letters, Elsevier, vol. 55(1), pages 91-95, August.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:nya:albaec:99-02. 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: (John Bailey Jones)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.