A Consistent Multidimensional Generalization of the Pigou-Dalton Transfer Principle: An Analysis

Henar Diez, Universidad del País Vasco
M. Casilda Lasso de la Vega, Universidad del País Vasco
Amaia de Sarachu, Universidad del País Vasco
Ana M. Urrutia, Universidad del País Vasco

A BEJTE Topics article.

Abstract

This paper explores the implications of using multidimensional majorization criteria to derive inequality measures, without taking into consideration the idea behind the Pigou-Dalton principle, in the sense that if a richer person transfers something of at least one attribute to a poorer person the inequality falls. A new and basic criterion proposed by Fleurbaey and Trannoy (2003) which generalizes this idea to the multidimensional framework is explored, and its logical relationships with the dominance criteria that exist in the literature are analyzed. The paper also surveys the existent multidimensional inequality indices in order to see whether they meet this new criterion.

Submitted: July 6, 2007 · Accepted: November 25, 2007 · Published: December 15, 2007

Recommended Citation

Diez, Henar; Lasso de la Vega, M. Casilda; de Sarachu, Amaia; and Urrutia, Ana M. (2007) "A Consistent Multidimensional Generalization of the Pigou-Dalton Transfer Principle: An Analysis," The B.E. Journal of Theoretical Economics: Vol. 7 : Iss. 1 (Topics), Article 45.
DOI: 10.2202/1935-1704.1408
Available at: http://www.bepress.com/bejte/vol7/iss1/art45

 
 
 
 

ISSN: 1935-1704 ©1999-2009 The Berkeley Electronic Press™ All rights reserved.

To submit, subscribe, recommend this journal to your library, or sign up for email alerts, please visit: http://www.bepress.com/bejte