Welfare comparisons with bounded equivalence scales. (Q1399557)

Consider two income distributions \(f\) and \(f^*\), both with bounded support. This paper gives a necessary and sufficient condition for \(f\) to dominate \(f^*\) with respect to a family of concave utility functions. This result generalizes the \textit{A. Atkinson} and \textit{F. Bourguignon} result [Income distribution and differences in needs, Arrow and the foundations of the theory of economic policy (New York University Press, New York), 350--370 (1987)], and is also shown to include as a special case the result of Ebert (1999). A recursive algorithm is exhibited which performs the necessary dominance calculation.