Multidimensional inequality comparisons: A compensation perspective

• 成果类型: Article
• 署名作者: Muller, Christophe; Trannoy, Alain
• 署名单位: Aix-Marseille Universite; Aix-Marseille Universite
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2011.09.002
• 发表日期: 2012
• 页码: 1427-1449
• 关键词: Multidimensional welfare; COMPENSATION; dominance; Lorenz criterion

摘要

We provide a unified treatment of the two approaches pioneered by Atkinson and Bourguignon (1982, 1987) [3,4] by resorting to compensation principles in the bivariate case. We treat the attributes of individual utility asymmetrically by assuming that one attribute can be used to compensate another. Our main result consists of two sufficient second-order stochastic dominance conditions. In the case where the compensated variable has a discrete distribution, the distribution of the compensating variable must satisfy a condition which degenerates to the Sequential Generalized Lorenz test for identical marginal distributions of the compensated variable. Furthermore, the distributions of the compensated variable must satisfy the Generalized Lorenz test. (c) 2011 Elsevier Inc. All rights reserved.