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Welfare functions and inequality indices in the binomial decomposition of OWA functions

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  • Silvia Bortot
  • Ricardo Alberto Marques Pereira
  • Thuy H. Nguyen

Abstract

n the context of Choquet integration with respect to symmetric capacities, we consider the binomial decomposition of OWA functions in terms of the binomial Gini welfare functions Cj , j = 1, ..., n, and the associated binomial Gini inequality indices Gj , j = 1, ..., n, which provide two equivalent descriptions of k-additivity. We illustrate the weights of the binomial Gini welfare functions Cj , j = 1, ..., n, and the coefficients of the associated binomial Gini inequality indices Gj , j = 1, ..., n, which progressively focus on the poorest part of the population. Moreover, we investigate the numerical behavior of the binomial Gini welfare functions and inequality indices in relation to a family of income distributions described by a parameter related with inequality.

Suggested Citation

  • Silvia Bortot & Ricardo Alberto Marques Pereira & Thuy H. Nguyen, 2015. "Welfare functions and inequality indices in the binomial decomposition of OWA functions," DEM Discussion Papers 2015/08, Department of Economics and Management.
    • Handle: RePEc:trn:utwpem:2015/08
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