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Lifetime And Vertical Intertemporal Inequality, Income Smoothing, And Redistribution: A Social Welfare Approach

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  • Rafael Salas
  • Isabel Rabadan

Abstract

Between and within‐households intertemporal inequality indices are proposed to highlight the vertical and lifetime (i.e. cyclical) components of overall intertemporal inequality. Comparison with the classical static inequality indices is made. Income redistribution and smoothing (i.e. stabilization) are conveniently defined as the public policy impact on welfare, by means of the relative increase in intertemporal vertical and cyclical equity, respectively. The issue is important as many public policies are aimed at both (vertical and cyclical equity) objectives. Our approach provides a more appropriate evaluation of the desirability of public reforms aimed at achieving a greater vertical and cyclical equity, within a social welfare framework.

Suggested Citation

  • Rafael Salas & Isabel Rabadan, 1998. "Lifetime And Vertical Intertemporal Inequality, Income Smoothing, And Redistribution: A Social Welfare Approach," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 44(1), pages 63-79, March.
    • Handle: RePEc:bla:revinw:v:44:y:1998:i:1:p:63-79
    DOI: 10.1111/j.1475-4991.1998.tb00252.x
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    Cited by:

    1. Antonio Abatemarco, 2017. "Evaluating Economic Mobility under Opportunity Egalitarianism," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 9(12), pages 260-277, December.
    2. Sami Bibi & Jean-Yves Duclos & Abdelkrim Araar, 2014. "Mobility, taxation and welfare," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 42(3), pages 503-527, March.
    3. Jean-Yves DUCLOS & Bouba HOUSSEINI, 2013. "Life quantity, life quality and longevity: An intertemporal social evaluation framework," Working Papers P79, FERDI.

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