Linear Inequality Concepts and Social Welfare

38 Pages Posted: 21 Feb 2008

See all articles by Udo Ebert

Udo Ebert

University of Oldenburg - Department of Economics and Statistics

Date Written: November 1997

Abstract

The paper presents an abstract definition of linear inequality concepts leading to linearly invariant inequality measures and characterizes the class of linear concepts completely. Two general methods of deriving ethical measures are proposed. They imply an Atkinson-Kolm-Sen index and a new dual index reflecting the inequality of living standard. Then all separable social welfare orderings which generate linearly invariant measures are characterized. The measures are presented and their general properties discussed. Dual measures prove to be additively decomposable. Linear welfare orderings defined on rank-ordered income vectors are examined. They are consistent with all linear inequality and yield an inequality ordering for every concept.

Suggested Citation

Ebert, Udo, Linear Inequality Concepts and Social Welfare (November 1997). LSE STICERD Research Paper No. 33, Available at SSRN: https://ssrn.com/abstract=1094779

Udo Ebert (Contact Author)

University of Oldenburg - Department of Economics and Statistics ( email )

Oldenburg, D 26111
Germany
[49]-441-7988225 (Phone)
[49]-441-7988309 (Fax)

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