Transfer Principles and Inequality Aversion
Posted: 3 Feb 2003
Abstract
This paper characterize two preorders over vectors, representing here income distributions, which, for the case of an order-preserving additive welfare function, corresponds the the increasing concave functions which are more concave than ln(x) and than -1/x, respectively. We provide a characterization of those functions which is quite distinct from the one recently provided by Fleurbaey and Michel, Mathematical Social Sciences, 2001. The two sets of results are compared.
Keywords: Majorization, stochastic dominance, income inequality, risk aversion, expected utility
JEL Classification: D63, D81, I31
Suggested Citation: Suggested Citation
Aboudi, Ronny and Thon, Dominique, Transfer Principles and Inequality Aversion. Available at SSRN: https://ssrn.com/abstract=375720
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