Welfare comparisons with bounded equivalence scales. (Q1399557)

From MaRDI portal
scientific article
Language Label Description Also known as
English
Welfare comparisons with bounded equivalence scales.
scientific article

    Statements

    Welfare comparisons with bounded equivalence scales. (English)
    0 references
    0 references
    0 references
    0 references
    30 July 2003
    0 references
    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.
    0 references
    heterogeneous population
    0 references
    equivalence scales
    0 references
    stochastic dominance
    0 references
    welfare comparisons
    0 references

    Identifiers