Premium
VALUE JUDGEMENTS IMPLIED BY THE USE OF VARIOUS MEASURES OF INCOME INEQUALITY *
Author(s) -
Kondor Yaakov
Publication year - 1975
Publication title -
review of income and wealth
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.024
H-Index - 57
eISSN - 1475-4991
pISSN - 0034-6586
DOI - 10.1111/j.1475-4991.1975.tb00822.x
Subject(s) - economics , poverty , inequality , value (mathematics) , public economics , welfare , measure (data warehouse) , test (biology) , social welfare function , economic inequality , positive economics , econometrics , economic growth , mathematics , statistics , market economy , mathematical analysis , paleontology , database , computer science , biology
If a welfare economist wants to express income inequality in a sensible way by a single parameter, he has to make rather strong assumptions regarding the social preferences of his fellow citizens. Formulas are presented with whose aid one is able to test whether or not these assumptions hold. The standard measures used nowadays contradict prevailing preferences. If no common single measure can be found which fits the social preferences of almost all individuals concerned tolerably well, additional parameters measuring poverty and riches separately are necessary.