A consistent multidimensional Pigou–Dalton transfer principle
The unidimensional Pigou–Dalton transfer principle demands that a regressive transfer in income—a transfer from worse-off (poor) to better-off (rich)—decreases social welfare. In a multidimensional setting the direct link between income (or any other attribute) and individual well-being is absent. W...
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| Veröffentlicht in: | Journal of economic theory 2009-05, Vol.144 (3), p.1358-1371 |
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| container_title | Journal of economic theory |
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| creator | Bosmans, Kristof Lauwers, Luc Ooghe, Erwin |
| description | The unidimensional Pigou–Dalton transfer principle demands that a regressive transfer in income—a transfer from worse-off (poor) to better-off (rich)—decreases social welfare. In a multidimensional setting the direct link between income (or any other attribute) and individual well-being is absent. We interpret the social welfare level of a distribution in which each individual has the same bundle as the individual well-being level. We define regressivity on the basis of this individual well-being ranking. In a setting with both transferable and non-transferable attributes, the imposition of the ensuing “consistent” Pigou–Dalton principle forces individual well-being to have a quasi-linear structure in the transferable attributes. Since we allow for transferable and non-transferable attributes, our result provides a normative underpinning for criteria in the distinct literatures of multidimensional inequality measurement (only transferable attributes) and of needs (one transferable and one non-transferable attribute). |
| doi_str_mv | 10.1016/j.jet.2009.01.003 |
| format | Article |
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| ispartof | Journal of economic theory, 2009-05, Vol.144 (3), p.1358-1371 |
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| language | eng |
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| source | RePEc; Elsevier ScienceDirect Journals Complete |
| subjects | Basic needs Budget dominance Economic models Economic theory Equivalence scale Happiness Income Income distribution Income inequality Inequality Majorization Multidimensional analysis Multidimensional inequality measurement Needs Pigou-Dalton principle Multidimensional inequality measurement Majorization Budget dominance Needs Equivalence scale Pigou–Dalton principle Regression analysis Social welfare Studies Transfer Welfare economics |
| title | A consistent multidimensional Pigou–Dalton transfer principle |
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