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Desigualdad y Bienestar en España y sus Comunidades Autónomas (1973-2003)
[Inequality and welfare in Spain and its Autonomous Communities]

Author

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  • Goerlich, Francisco José
  • Villar, Antonio

Abstract

This paper presents an integration between the normative approach of Dalton-Atkinson-Sen to inequality measurement with the positive approach related to the statistical dispersion or the generalized entropy family of inequality indexes. Given a social valuation formula that expresses the aggregate social value as a weighted sum of particular incomes, where the weights represents the marginal social value of the individuals in the society, our approach selects a particular inequality index, the original Theil (1967) index, T, from the imposition on the social valuation formula, a minimal set of sensible conditions. Eventually an empirical exercise based on the Household Budget Surveys follows, that shows how improvements in the distribution have contributed to the increase in welfare beyond the observed increase in per capita income.

Suggested Citation

  • Goerlich, Francisco José & Villar, Antonio, 2009. "Desigualdad y Bienestar en España y sus Comunidades Autónomas (1973-2003)
    [Inequality and welfare in Spain and its Autonomous Communities]
    ," MPRA Paper 19487, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:19487
    as

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    File URL: https://mpra.ub.uni-muenchen.de/19487/1/MPRA_paper_19487.pdf
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    References listed on IDEAS

    as
    1. Ruiz-Castillo, Javier, 2007. "La medición de la desigualdad de la renta : una revisión de la literatura," DE - Documentos de Trabajo. Economía. DE de20070222, Universidad Carlos III de Madrid. Departamento de Economía.
    2. Lambert, Peter J & Aronson, J Richard, 1993. "Inequality Decomposition Analysis and the Gini Coefficient Revisited," Economic Journal, Royal Economic Society, vol. 103(420), pages 1221-1227, September.
    3. Goerlich Gisbert Francisco J. & Villar Notario Antonio, 2009. "Desigualdad y bienestar social: de la teoría a la práctica," Books, Fundacion BBVA / BBVA Foundation, edition 0, number 201190.
    4. Claude d' Aspremont, 1994. "Welfarism and interpersonal comparisons," Investigaciones Economicas, Fundación SEPI, vol. 18(1), pages 3-17, January.
    5. Ebert, Udo, 1987. "Size and distribution of incomes as determinants of social welfare," Journal of Economic Theory, Elsevier, vol. 41(1), pages 23-33, February.
    6. Dutta, B. & Esteban, J., 1988. "Social Welfare And Equality," UFAE and IAE Working Papers 89.88, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
    7. Goerlich, Francisco José & Mas, Matilde, 2004. "Three (Marginal?) Questions Regarding Convergence," MPRA Paper 15876, University Library of Munich, Germany, revised 2004.
    8. Coral del RÎo & Javier Ruiz-Castillo, 2000. "Intermediate inequality and welfare," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 17(2), pages 223-239.
    9. Blackorby, Charles & Donaldson, David, 1978. "Measures of relative equality and their meaning in terms of social welfare," Journal of Economic Theory, Elsevier, vol. 18(1), pages 59-80, June.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Inequality; Income Distribution; Welfare; Household Budget Surveys;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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