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Linear inequality concepts and social welfare

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  • Ebert, Udo

Abstract

The paper presents an abstract definition of linear inequality concepts leading to linearly invariant inequality measures and characterizes the class of linear concepts completely. Two general methods of deriving ethical measures are proposed. They imply an Atkinson-Kolm-Sen index and a new dual index reflecting the inequality of living standard. Then all separable social welfare orderings which generate linearly invariant measures are characterized. The measures are presented and their general properties discussed. Dual measures prove to be additively decomposable. Linear welfare orderings defined on rank-ordered income vectors are examined. They are consistent with all linear inequality and yield an inequality ordering for every concept.

Suggested Citation

  • Ebert, Udo, 1997. "Linear inequality concepts and social welfare," LSE Research Online Documents on Economics 6596, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:6596
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    References listed on IDEAS

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    1. Udo Ebert, 1999. "Dual Decomposable Inequality Measures," Canadian Journal of Economics, Canadian Economics Association, vol. 32(1), pages 234-246, February.
    2. Bossert, Walter & Pfingsten, Andreas, 1990. "Intermediate inequality: concepts, indices, and welfare implications," Mathematical Social Sciences, Elsevier, vol. 19(2), pages 117-134, April.
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    7. Shorrocks, Anthony F, 1984. "Inequality Decomposition by Population Subgroups," Econometrica, Econometric Society, vol. 52(6), pages 1369-1385, November.
    8. Ebert, Udo, 1987. "Size and distribution of incomes as determinants of social welfare," Journal of Economic Theory, Elsevier, vol. 41(1), pages 23-33, February.
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    Cited by:

    1. Ebert, Udo, 2004. "Coherent inequality views: linear invariant measures reconsidered," Mathematical Social Sciences, Elsevier, vol. 47(1), pages 1-20, January.

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    More about this item

    Keywords

    inequality concept; ethical inequality measures; decomposability; social welfare;
    All these keywords.

    JEL classification:

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

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