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Welfare comparisons: sequential procedures for heterogenous populations

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  • Peter J. Lambert
  • Xavier Ramos

    () (Departament d'Economia Aplicada, Universitat Autonoma de Barcelona)

Abstract

Some analysts use sequential dominance criteria, and others use equivalence scales in combination with non-sequential dominance tests, to make welfare comparisons of joint distributions of income and needs. In this paper we present a new sequential procedure which copes with situations in which sequential dominance fails. We also demonstrate that the recommendations deriving from the sequential approach are valid for distributions of equivalent income whatever equivalence scale the analyst might adopt. Thus the paper marries together the sequential and equivalizing approaches, seen as alternatives in much previous literature. All results are specified in forms which allow for demographic differences in the populations being compared.

Suggested Citation

  • Peter J. Lambert & Xavier Ramos, 2001. "Welfare comparisons: sequential procedures for heterogenous populations," Working Papers wp0114, Department of Applied Economics at Universitat Autonoma of Barcelona.
  • Handle: RePEc:uab:wprdea:wp0114
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Claudio Zoli & Peter Lambert, 2012. "Sequential procedures for poverty gap dominance," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 39(2), pages 649-673, July.
    2. Oguzhan Dincer & Christopher Ellis & Glen Waddell, 2010. "Corruption, decentralization and yardstick competition," Economics of Governance, Springer, pages 269-294.
    3. Ooghe, Erwin & Lambert, Peter, 2006. "On bounded dominance criteria," Mathematical Social Sciences, Elsevier, vol. 52(1), pages 15-30, July.
    4. Savaglio, Ernesto, 2011. "On multidimensional inequality with variable distribution mean," Journal of Mathematical Economics, Elsevier, vol. 47(4-5), pages 453-461.
    5. Moyes, Patrick, 2012. "Comparisons of heterogeneous distributions and dominance criteria," Journal of Economic Theory, Elsevier, vol. 147(4), pages 1351-1383.
    6. Udo Ebert, 2010. "Dominance criteria for welfare comparisons: using equivalent income to describe differences in needs," Theory and Decision, Springer, pages 55-67.
    7. Valérie Bérenger & Florent Bresson, 2012. "On The “Pro-Poorness” Of Growth In A Multidimensional Context," Review of Income and Wealth, International Association for Research in Income and Wealth, pages 457-480.
    8. Ooghe, Erwin, 2007. "Sequential dominance and weighted utilitarianism," Economics Letters, Elsevier, vol. 94(2), pages 208-212, February.
    9. Jorge Onrubia Fern·ndez & MarÌa del Carmen Rodado Ruiz, 2015. "oGravamen individual o grupal en el IRPF? Una valoraciÛn desde la movilidad distributiva," Studies on the Spanish Economy eee2015-01, FEDEA.
    10. Ida Petrillo, 2017. "Ranking income distributions: a rank-dependent and needs-based approach," SERIES 03-2017, Dipartimento di Economia e Finanza - Università degli Studi di Bari "Aldo Moro", revised Jul 2017.
    11. repec:kap:jecinq:v:15:y:2017:i:4:d:10.1007_s10888-017-9369-3 is not listed on IDEAS
    12. Magne Mogstad, 2007. "Measuring Income Inequality under Restricted Interpersonal Comparability," Discussion Papers 498, Statistics Norway, Research Department.
    13. Muller, Christophe & Trannoy, Alain, 2012. "Multidimensional inequality comparisons: A compensation perspective," Journal of Economic Theory, Elsevier, vol. 147(4), pages 1427-1449.

    More about this item

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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