Title
What do normative indices of multidimensional inequality really measure? What do normative indices of multidimensional inequality really measure?
Author
Faculty/Department
Faculty of Social Sciences. Sociology
Publication type
article
Publication
Amsterdam ,
Subject
Economics
Source (journal)
Journal of public economics. - Amsterdam
Volume/pages
130(2015) , p. 94-104
ISSN
0047-2727
ISI
000365061300008
Carrier
E
Target language
English (eng)
Full text (Publishers DOI)
Affiliation
University of Antwerp
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.
Full text (open access)
https://repository.uantwerpen.be/docman/irua/f048d9/129373.pdf
E-info
https://repository.uantwerpen.be/docman/iruaauth/df4c8c/129373.pdf
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