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Inequality, welfare and monotonicity

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Listed:
  • Amiel, Yoram
  • Cowell, Frank

Abstract

We stablish a general relationship between the standard form of the individualistic social-welfare function and the "reduced-form" version that is expressed in terms of inequality and mean income. This shows the relationship between the property of monotonicity and the slope of the equity-efficient trade-off. Particularly simple results are available for a large class of inequality measures that includes the Gini. These results do not require differentiability of the social-welfare function.

Suggested Citation

  • Amiel, Yoram & Cowell, Frank, 1997. "Inequality, welfare and monotonicity," LSE Research Online Documents on Economics 2222, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:2222
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    File URL: http://eprints.lse.ac.uk/2222/
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    References listed on IDEAS

    as
    1. Chipman, John S., 1974. "The welfare ranking of Pareto distributions," Journal of Economic Theory, Elsevier, vol. 9(3), pages 275-282, November.
    2. Amiel, Yoram & Cowell, Frank, 1994. "Monotonicity, dominance and the Pareto principle," Economics Letters, Elsevier, vol. 45(4), pages 447-450, August.
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    More about this item

    Keywords

    Inequality; social welfare; monotonicity;
    All these keywords.

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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