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A note on Inequality-Preserving Distributional Changes

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  • Creedy, John

Abstract

This note considers the problem of distributing a fixed amount of money (‘income’) among a given number of people, such that inequality (measured by either the Gini or Atkinson measure) takes a specified value. It is well known that simultaneous equations admit of many solutions where the number of variables exceeds that of equations (constraints). However, the approach examines cases where there are just one or two degrees of freedom, clarifying the resulting range of distributions. The properties of simultaneous disequalising and equalising transfers are discussed.

Suggested Citation

  • Creedy, John, 2014. "A note on Inequality-Preserving Distributional Changes," Working Paper Series 18856, Victoria University of Wellington, Chair in Public Finance.
    • Handle: RePEc:vuw:vuwcpf:18856
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    File URL: https://ir.wgtn.ac.nz/handle/123456789/18856
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    References listed on IDEAS

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    1. S. Subramanian, 2002. "An Elementary Interpretation of the Gini Inequality Index," Theory and Decision, Springer, vol. 52(4), pages 375-379, June.
    2. Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
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    Cited by:

    1. Creedy, John, 2019. "The Atkinson Inequality Measure and Inequality Aversion," Working Paper Series 8015, Victoria University of Wellington, Chair in Public Finance.
    2. John Creedy & Norman Gemmell & Loc Nguyen, 2018. "Income Inequality in New Zealand, 1935–2014," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 51(1), pages 21-40, March.
    3. Creedy, John, 2019. "The Atkinson Inequality Measure and Inequality Aversion," Working Paper Series 20918, Victoria University of Wellington, Chair in Public Finance.
    4. Creedy, John, 2021. "Comparing Income Distributions Using Atkinson’s Measure of Inequality," Working Paper Series 9469, Victoria University of Wellington, Chair in Public Finance.
    5. John Creedy, 2023. "Distributional Comparisons Using the Gini Inequality Measure," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 56(4), pages 538-550, December.
    6. John Creedy, 2023. "Comparing Income Distributions Using Atkinson's Measure of Inequality," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 56(1), pages 141-155, March.
    7. Creedy, John, 2021. "Distributional Comparisons Using the Gini Inequality Measure," Working Paper Series 9471, Victoria University of Wellington, Chair in Public Finance.

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