The Economics of Poverty and Inequality Volume I
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1 The Economics of Poverty and Inequality Volume I Edited by Frank A. Co well Professor of Economics and Director of the Distributional Analysis Research Programme London School of Economics and Political Science, UK THE INTERNATIONAL LIBRARY OF CRITICAL WRITINGS IN ECONOMICS An Elgar Reference Collection Cheltenham, UK Northampton, MA, USA The economics of poverty and inequality 2003 digitalisiert durch: IDS Luzern
2 Contents Acknowledgements Introduction Frank A. Cowell ix xiii PART I PART II PART III WELFARE BASIS OF DISTRIBUTIONAL ANALYSIS 1. A.C. Pigou (1912), 'Economic Welfare and the National Dividend', in Wealth and Welfare, Chapter II, London: Macmillan, Hugh Dalton (1920), 'The Measurement of the Inequality of Incomes', Economic Journal, XXX (9), September, John C. Harsanyi (1955), 'Cardinal Welfare, Individualistic Ethics, and Interpersonal Comparisons of Utility', Journal of Political Economy, LXIII (4), August, Harold M. Hochman and James D. Rodgers (1969), 'Pareto Optimal Redistribution', American Economic Review, LIX (4, Part I), September, Larry S. Temkin (1986), 'Inequality', Philosophy and Public Affairs, 15 (2), Spring, Yoram Amiel and Frank A. Cowell (1992), 'Measurement of Income Inequality: Experimental Test by Questionnaire', Journal of Public Economics, 47, Peter Vallentyne (2000), 'Equality, Efficiency, and the Priority of the Worse-off, Economics and Philosophy, 16 (1), WELFARE AND INEQUALITY RANKINGS 8. M.O. Lorenz (1905), 'Methods of Measuring the Concentration of Wealth', Publications of the American Statistical Association, 9 (70), New Series, June, Jan Pen (1971), 'AParadeof Dwarfs (and a Few Giants)', excerpt from 'Some Facts to be Explained', in Income Distribution, Chapter III, Section 1, London: Penguin, Rubin Saposnik (1981), 'Rank-dominance in Income Distributions', Public Choice, 36, Anthony F. Shorrocks (1983), 'Ranking Income Distributions', Economica, 50, Peter C. Fishburn and Robert D. Willig (1984), 'Transfer Principles in Income Redistribution', Journal of Public Economics, 25, INEQUALITY MEASUREMENT 13. Corrado Gini(1921), 'Measurement of Inequality of Incomes', Economic Journal, XXXI,
3 The Economics of Poverty and Inequality I Henri Theil (1967), 'The Measurement of Income Inequality', in Economics and Information Theory, Chapter 4, Amsterdam: North- Holland, Menahem E. Yaari (1988), 'A Controversial Proposal Concerning Inequality Measurement', Journal of Economic Theory, 44 (4), PART IV PART V PART VI INEQUALITY: WELFARE APPROACH 16. S.-Ch. Kolm ([1969] 2001), 'The Optimal Production of Social Justice', in J. Margolis and H. Guitton (eds), Public Economics: An Analysis of Public Production and Consumption and their Relations to the Private Sectors, London: Macmillan, (corrected by author and reset) Anthony B. Atkinson (1970), 'On the Measurement of Inequality', Journal of Economic Theory, 2, Partha Dasgupta, Amartya Sen and David Starrett (1973), 'Notes on the Measurement of Inequality', Journal of Economic Theory, 6, Michael Rothschild and Joseph E. Stiglitz (1973), 'Some Further Results on the Measurement of Inequality', Journal of Economic Theory, 6, J.E. Meade (1976), 'The Objectives of Distributional Policies', in The Just Economy, Chapter IV, London: George Allen and Unwin, Serge-Christophe Kolm (1976), 'Unequal Inequalities. I', Journal of Economic Theory, 12, Serge-Christophe Kolm (1976), 'Unequal Inequalities. IF, Journal of Economic Theory, 13, Charles Blackorby and David Donaldson (1978), 'Measures of Relative Equality and Their Meaning in Terms of Social Welfare', Journal of Economic Theory, 18, INEQUALITY: STRUCTURE 24. Francois Bourguignon (1979), 'Decomposable Income Inequality Measures', Econometrica, 47 (4), July, Frank A. Cowell (1980), 'On the Structure of Additive Inequality Measures', Review of Economic Studies, XLVII, Anthony F. Shorrocks (1984), 'Inequality Decomposition by Population Subgroups', Econometrica, 52 (6), November, Udo Ebert (1988), 'A Family of Aggregative Compromise Inequality Measures', International Economic Review, 29 (2), May, MULTIDIMENSIONAL APPROACHES 28. Frank A. Cowell (1985), 'Measures of Distributional Change: An Axiomatic Approach', Review of Economic Studies, LII,
4 The Economics of Poverty and Inequality I vi i 29. Serge-Christophe Kolm (1977), 'Multidimensional Egalitarianisms', Quarterly Journal of Economics, XCI (1), February, A.F. Shorrocks (1982), 'Inequality Decomposition by Factor Components', Econometrica, 50 (1), January, PART VII POLARIZATION 31. Joan-Maria Esteban and Debraj Ray (1994), 'On the Measurement of Polarization', Econometrica, 62 (4), July, Michael C. Wolfson (1994), 'Conceptual Issues in Normative Measurement: When Inequalities Diverge', American Economic Review, 84 (2), May, PART VIII HORIZONTAL EQUITY 33. A.B. Atkinson (1980), 'Horizontal Equity and the Distribution of the Tax Burden', in Henry J. Aaron and Michael J. Boskin (eds), The Economics of Taxation, Washington, DC: Brookings Institution, Robert Plotnick (1981), 'A Measure of Horizontal Inequity', Review of Economics and Statistics, LXIII, Name Index 625
5 The Economics of Poverty and Inequality Volume II V, i u Edited by Frank A. Cowell Professor of Economics and Director of the Distributional Analysis Research Programme London School of Economics and Political Science, UK THE INTERNATIONAL LIBRARY OF CRITICAL WRITINGS IN ECONOMICS An Elgar Reference Collection Cheltenham, UK Northampton, MA, USA
6 Contents Acknowledgements An Introduction by the editor to both volumes appears in Volume I ix PART I PART II PART HI POVERTY CONCEPT AND POVERTY LINE 1. Mollie Orshansky (1965), 'Counting the Poor: Another Look at the Poverty Profile', Social Security Bulletin, 28 (1), January, Peter Townsend (1979), 'Introduction: Concepts of Poverty and Deprivation', in Poverty in the United Kingdom: A Survey of Household Resources and Standards of Living, Chapter 1, London: Penguin Books, Amartya Sen (1979), 'Issues in the Measurement of Poverty', Scandinavian Journal of Economics, 81, Amartya Sen (1983), 'Poor, Relatively Speaking', Oxford Economic Papers, 35, Andrea Cerioli and Sergio Zani (1990), 'A Fuzzy Approach to the Measurement of Poverty', in Camilo Dagum and Michele Zenga (eds), Income and Wealth Distribution, Inequality and Poverty, Berlin: Springer-Verlag, Martin Ravallion (1996), 'Issues in Measuring and Modelling Poverty', Economic Journal, 106 (438), September, POVERTY MEASURES 7. Harold Watts (1968), 'An Economic Definition of Poverty', in Daniel P. Moynihan (ed.), On Understanding Poverty, Chapter 11, New York and London: Basic Books, Charles Blackorby and David Donaldson (1980), 'Ethical Indices for the Measurement of Poverty', Econometrica, 48 (4), May, Stephen Clark, Richard Hemming and David Ulph (1981), 'On Indices for the Measurement of Poverty', Economic Journal, 91, June, James Foster, Joel Greer and Erik Thorbecke (1984), 'A Class of Decomposable Poverty Measures', Econometrica, 52 (3), May, Aldi Hagenaars (1987), 'A Class of Poverty Indices', International Economic Review, 28 (3), October, POVERTY AXIOMS AND RANKINGS 12. Amartya Sen (1976), 'Poverty: An Ordinal Approach to Measurement', Econometrica, 44 (2), March,
7 The Economics of Poverty and Inequality II 13. A. Kundu and T.E. Smith (1983), 'An Impossibility Theorem on Poverty Indices', International Economic Review, 24 (2), June, A.B. Atkinson (1987), 'On the Measurement of Poverty', Econometrica, 55 (4), July, J.E. Foster and A.F. Shorrocks (1988), 'Poverty Orderings and Welfare Dominance', Social Choice and Welfare, 5 (2/3), PART IV PART V PART VI WELFARE, INEQUALITY AND NEEDS 16. Anthony B. Atkinson and Francois Bourguignon (1987), 'Income Distribution and Differences in Needs', in George R. Feiwel (ed.), Arrow and the Foundations of the Theory of Economic Policy, Chapter 12, Houndmills: Macmillan Press, Fiona A.E. Coulter, Frank A. Cowell and Stephen P. Jenkins (1992), 'Equivalence Scale Relativities and the Extent of Inequality and Poverty', Economic Journal, 102, September, Edward P. Lazear and Robert T. Michael (1980), 'Family Size and the Distribution of Real Per Capita Income', American Economic Review, LXX, Angus S. Deaton and John Muellbauer (1986), 'On Measuring Child Costs: With Applications to Poor Countries', Journal of Political Economy, 94 (4), RELATIVE DEPRIVATION 20. S.R. Chakravarty and A.B. Chakraborty (1984), 'On Indices of Relative Deprivation', Economics Letters, 14, Shlomo Yitzhaki (1982), 'Relative Deprivation and Economic Welfare', European Economic Review, 17 (1), PROGRESSIVITY 22. R.A. Musgrave and Tun Thin (1948), 'Income Tax Progression, ', Journal of Political Economy, LVI (6), December, J. Fellman (1976), 'The Effect of Transformations on Lorenz Curves', Econometrica, 44 (4), July, Ulf Jakobsson (1976), 'On the Measurement of the Degree of Progression', Journal of Public Economics, 5 (1-2), January- February, PART VII DYNAMICS 25. Mary Jo Bane and David T. Ellwood (1986), 'Slipping Into and Out of Poverty: The Dynamics of Spells', Journal of Human Resources, XXI (1), Winter, Lee A. Lillard and Robert J. Willis (1978), 'Dynamic Aspects of Earning Mobility', Econometrica, 46 (5), September,
8 The Economics of Poverty and Inequality II PART VIII PART IX FUNCTIONAL FORMS OF INCOME AND WEALTH DISTRIBUTION 27. Vilfredo Pareto ([1896] 2001), 'On the Distribution of Wealth and Income', in Mario Baldassarri and Pierluigi Ciocca (eds), Roots of the Italian School of Economics and Finance: From Ferrara (1857) to Einaudi (1944), Volume 2, Houndmills: Palgrave, Robert Gibrat ([1931] 1957), 'On Economic Inequalities', International Economic Papers, 7, John S. Chipman (1974), 'The Welfare Ranking of Pareto Distributions', Journal of Economic Theory, 9, J. Aitchison and J.A.C. Brown (1954), 'On Criteria for Descriptions of Income Distribution', Metroeconomica, VI, D.G. Champernowne (1952), 'The Graduation of Income Distributions', Econometrica, 20, S.K. Singh and G.S. Maddala (1976), 'A Function for Size Distribution of Incomes', Econometrica, 44 (5), September, James B. McDonald and Michael R. Ransom (1979), 'Functional Forms, Estimation Techniques and the Distribution of Income', Econometrica, 47 (6), November, STATISTICAL ISSUES 34. Frank A. Cowell and Fatemeh Mehta (1982), 'The Estimation and Interpolation of Inequality Measures', Review of Economic Studies, XLIX, Jeffrey A. Mills and Sourushe Zandvakili (1997), 'Statistical Inference via Bootstrapping for Measures of Inequality', Journal of Applied Econometrics, 12, Charles M. Beach and Russell Davidson (1983), 'Distribution-Free Statistical Inference with Lorenz Curves and Income Shares', Review of Economic Studies, L, Frank A. Cowell and Maria-Pia Victoria-Feser (1996), 'Robustness Properties of Inequality Measures', Econometrica, 64 (1), January, Name Index 665
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