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A Consistent Multidimensional Generalization of the Pigou-Dalton Transfer Principle: An Analysis

Author

Listed:
  • Diez Henar

    (Universidad del País Vasco, henar.diez@ehu.es)

  • Lasso de la Vega M. Casilda

    (Universidad del País Vasco, casilda.lassodelavega@ehu.es)

  • de Sarachu Amaia

    (Universidad del País Vasco, amaia.sarachu@ehu.es)

  • Urrutia Ana M.

    (Universidad del País Vasco, anamarta.urrutia@ehu.es)

Abstract

This paper explores the implications of using multidimensional majorization criteria to derive inequality measures, without taking into consideration the idea behind the Pigou-Dalton principle, in the sense that if a richer person transfers something of at least one attribute to a poorer person the inequality falls. A new and basic criterion proposed by Fleurbaey and Trannoy (2003) which generalizes this idea to the multidimensional framework is explored, and its logical relationships with the dominance criteria that exist in the literature are analyzed. The paper also surveys the existent multidimensional inequality indices in order to see whether they meet this new criterion.

Suggested Citation

  • Diez Henar & Lasso de la Vega M. Casilda & de Sarachu Amaia & Urrutia Ana M., 2007. "A Consistent Multidimensional Generalization of the Pigou-Dalton Transfer Principle: An Analysis," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 7(1), pages 1-17, December.
    • Handle: RePEc:bpj:bejtec:v:7:y:2007:i:1:n:45
    DOI: 10.2202/1935-1704.1408
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    Citations

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    Cited by:

    1. Mogues, Tewodaj, 2008. "A two-dimensional measure of polarization:," IFPRI discussion papers 837, International Food Policy Research Institute (IFPRI).
    2. Marc Fleurbaey & Stéphane Zuber, 2013. "Inequality aversion and separability in social risk evaluation," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 54(3), pages 675-692, November.
    3. Casilda Lasso de la Vega & Ana Urrutia & Amaia Sarachu, 2010. "Characterizing multidimensional inequality measures which fulfil the Pigou–Dalton bundle principle," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 35(2), pages 319-329, July.
    4. Rolf Aaberge & Andrea Brandolini, 2014. "Multidimensional poverty and inequality," Discussion Papers 792, Statistics Norway, Research Department.

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