What do normative indices of multidimensional inequality really measure?

A-Tier
Journal: Journal of Public Economics
Year: 2015
Volume: 130
Issue: C
Pages: 94-104

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We argue that normative indices of multidimensional inequality do not only measure a distribution's extent of inequity (i.e., the gaps between the better-off and the worse-off), but also its extent of inefficiency (i.e., the non-realized mutually beneficial exchanges of goods). We provide a decomposition that allows us to quantify these two parts of inequality. Strikingly, the inequity component turns out to be a two-stage measure, that is, a measure that applies a unidimensional inequality measure to the vector of individual well-being levels. The decomposition also clarifies existing controversies surrounding two prominent transfer axioms, viz., uniform majorization and correlation increasing majorization. An application to inequality in human development illustrates the analysis.

Technical Details

RePEc Handle
repec:eee:pubeco:v:130:y:2015:i:c:p:94-104
Journal Field
Public
Author Count
3
Added to Database
2026-01-24