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An axiomatic approach to the measurement of envy

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  • Bosmans, K.G.M.

    (Microeconomics & Public Economics)

  • Öztürk, Z.E.

    (Microeconomics & Public Economics)

Abstract

We characterize a class of envy measures. There are three key axioms. Decomposability requires that overall envy is the sum of the envy within and between subgroups. The other two axioms deal with the two-individual setting and specify how the envy measure should react to simple changes in the individuals’ commodity bundles. The characterized class measures the envy of one individual to another by the relative utility difference (using the envious’ utility function) between the bundle of the envied and the bundle of the envious. The particular utility representation to be used is fixed by the axioms. The class measures overall envy by the sum of these (transformed) relative utility differences. We discuss our results in the light of previous contributions to envy measurement and multidimensional inequality measurement.

Suggested Citation

  • Bosmans, K.G.M. & Öztürk, Z.E., 2013. "An axiomatic approach to the measurement of envy," Research Memorandum 063, Maastricht University, Graduate School of Business and Economics (GSBE).
    • Handle: RePEc:unm:umagsb:2013063
    DOI: 10.26481/umagsb.2013063
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    References listed on IDEAS

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    1. An axiomatic approach to the measurement of envy
      by maximorossi in NEP-LTV blog on 2013-11-18 17:43:39

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    3. Chen, Shuyang & Wang, Can, 2023. "Inequality impacts of ETS penalties: A case study on the recent Chinese nationwide ETS market," Energy Policy, Elsevier, vol. 173(C).
    4. Bramka Arga Jafino & Jan H. Kwakkel & Frans Klijn, 2022. "Evaluating the distributional fairness of alternative adaptation policies: a case study in Vietnam’s upper Mekong Delta," Climatic Change, Springer, vol. 173(3), pages 1-20, August.

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    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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