Transfer Principles and Inequality Aversion

Posted: 3 Feb 2003

See all articles by Ronny Aboudi

Ronny Aboudi

University of Miami - Department of Management Science

Dominique Thon

University of Nordland

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

Aboudi, Ronny and Thon, Dominique, Transfer Principles and Inequality Aversion. Available at SSRN: https://ssrn.com/abstract=375720

Ronny Aboudi

University of Miami - Department of Management Science ( email )

United States

Dominique Thon (Contact Author)

University of Nordland ( email )

Bodoe 8049
Norway

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