Handbook of Income Distribution, Volume 1 by Anthony B. Atkinson, F. Bourguignon

By Anthony B. Atkinson, F. Bourguignon

Distributional matters would possibly not have constantly been one of the major issues of the commercial occupation. at the present time, at first of the 2000s, the location is diverse. over the last area of a century, financial progress proved to be unsteady and quite sluggish on common. the location of these on the backside ceased to enhance on a regular basis as within the previous speedy progress and full-employment interval. Europe has visible lengthy unemployment and there was widening salary dispersion in a few OECD nations. emerging affluence in wealthy international locations coexists, in a couple of such international locations, with the endurance of poverty. therefore, it truly is tricky these days to think about a topic score excessive within the public monetary debate with no a few robust specific distributive implications. financial coverage, economic coverage, taxes, financial or exchange union, privatisation, rate and pageant legislation, the way forward for the Welfare nation are all concerns that are now frequently perceived as conflictual due to their powerful redistributive content material.

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5. A mean-preserving spread. may be reasons for querying this principle under certain circumstances 16 but we shall not pursue them here. These two axioms permit us to work with elementary distributions represented in the F-form. In particular they permit us to define an equal distribution, given that the concept of income and of income-receiver have been settled; this is the degenerate distribution H(X*) given by: )(x)= H( 0 otherwise (8) which places a single point mass at x*. But, of course, these two axioms do not get us very far by themselves.

2. 3. 2. 1. 2. 3. 1. 2. 4. 5. 6. 1. The bounding problem 134 134 135 136 137 138 139 140 141 142 143 Ch. 2. 3. 7. 1. 2. 3. 8. Re-using inequality measures 9. A brief conclusion References 89 144 145 145 145 146 147 149 149 150 Abstract The analysis of inequality is placed in the context of recent developments in economics and statistics. Keywords: Inequality, social welfare, income distribution JEL codes. C13, D63 1. 1. Inequality and income distribution Inequality measurement is a subject where much energy can be spent arguing about the meaning of terms.

2. Distributional judgements A serious approach to inequality measurement should begin with a consideration of the entities to which the tools of distributional judgment are being applied: what is being distributed amongst whom? Many of these issues are well rehearsed in the literature and so we will only give a cursory treatment here touching on the points that bear directly upon inequality analysis. 1. Income and the individual A coherent definition of "equality" in this context requires implementable definitions of income and of the income recipient.

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