On the Measurement of Inequality
TL;DR: In this paper, the problem of comparing two frequency distributions f(u) of an attribute y which for convenience I shall refer to as income is defined as a risk in the theory of decision-making under uncertainty.
About: This article is published in Journal of Economic Theory.The article was published on 1970-09-01. It has received 5002 citations till now. The article focuses on the topics: Income inequality metrics & Income distribution.
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TL;DR: This article examined the world size distribution of income for the decinnial years 1950-1980 and found that at a point in time, the intercountry differences in income were greater than the usually observed intracountry differences in incomes within nations.
54 citations
01 Jun 1972
TL;DR: In this paper, the effects of taxation on risk-taking from both a partial and a general equilibrium viewpoint were investigated, and the most relevant results to emerge at a very general level are that in the former taxation will typically increase risk taking, while in the latter it is typically better to tax risky industries more heavily than safe; both results are contrary to conventional views.
Abstract: This survey has considered the effects of taxation on risk-taking from both a partial and a general equilibrium viewpoint. The most relevant results to emerge at a very general level are that in the former taxation will typically increase risk-taking, while in the latter it is typically better to tax risky industries more heavily than safe; both results are contrary to conventional views.
54 citations
TL;DR: It is shown that disparities exist in the coverage of immunization to the advantage of the rich and it is argued that any policy that addresses these issues will likely reduce disparities in immunization coverage and put Nigeria on the road to sustainable development.
Abstract: Globally, in 2013 over 6 million children younger than 5 years died from either an infectious cause or during the neonatal period. A large proportion of these deaths occurred in developing countries, especially in sub-Saharan Africa. Immunization is one way to reduce childhood morbidity and deaths. In Nigeria, however, although immunization is provided without a charge at public facilities, coverage remains low and deaths from vaccine preventable diseases are high. This article seeks to assess inequalities in full and partial immunization coverage in Nigeria. It also assesses inequality in the 'intensity' of immunization coverage and it explains the factors that account for disparities in child immunization coverage in the country. Using nationally representative data, this article shows that disparities exist in the coverage of immunization to the advantage of the rich. Also, factors such as mother's literacy, region and location of the child, and socio-economic status explain the disparities in immunization coverage in Nigeria. Apart from addressing these issues, the article notes the importance of addressing other social determinants of health to reduce the disparities in immunization coverage in the country. These should be in line with the social values of communities so as to ensure acceptability and compliance. We argue that any policy that addresses these issues will likely reduce disparities in immunization coverage and put Nigeria on the road to sustainable development.
54 citations
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TL;DR: A collection of 100 key articles on the subject of the welfare state selected by one of the world's leading experts is presented in this paper, which provides an analytical background to the subject whilst illustrating the vast array of literature available.
Abstract: This authoritative collection brings together 100 key articles on the subject of the welfare state selected by one of the world’s leading experts. The first volume discusses the economic theory and related matters which underpin analysis of the welfare state. Volume II is about income transfers, especially social security benefits and poverty relief. Volume III looks at benefits in kind, particularly health care and education. This important work provides an analytical background to the subject whilst illustrating the vast array of literature available. It will be invaluable to students and professionals alike.
54 citations
TL;DR: This paper developed a model in which differences in fixed costs of characteristics across households can be identified from household behavior using the methodology of equivalence scales, and proposed a class of equivalent-expenditure functions that allows for differences in the fixed costs and generalizes both relationships.
Abstract: Some household expenditures, such as those for subsistence or basic needs, are fixed. Using the methodology of equivalence scales, we develop a model in which differences in fixed costs of characteristics across households can be identified from household behavior. Equivalent expenditure for a household is the expenditure needed to bring a reference household, such as a single childless adult, to the level of well-being of household members. The equivalence scale for the household is the ratio of expenditure to equivalent expenditure. Only two types of equivalent-expenditure functions are used in practice: those in which the ratio of household expenditure and equivalent expenditure is independent of expenditure, and those in which their difference is independent of expenditure. We propose a class of equivalent-expenditure functions that allows for differences in fixed costs and generalizes both relationships. Using Canadian consumer demand microdata, we estimate equivalent-expenditure functions and equiva...
54 citations
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TL;DR: In this article, a measure of risk aversion in the small, the risk premium or insurance premium for an arbitrary risk, and a natural concept of decreasing risk aversion are discussed and related to one another.
Abstract: This paper concerns utility functions for money. A measure of risk aversion in the small, the risk premium or insurance premium for an arbitrary risk, and a natural concept of decreasing risk aversion are discussed and related to one another. Risks are also considered as a proportion of total assets.
5,207 citations
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"On the Measurement of Inequality" refers background in this paper
...3 See Rothschild and Stiglitz [13], Hadar and Russell [ 5 ], and Hanoch and Levy [6]....
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1,738 citations
"On the Measurement of Inequality" refers methods in this paper
...Then by applying the results of Pratt [l 11, Arrow [ 2 ], and others, we can see that this requirement (which may be referred to as constant (relative) inequality-aversion) implies that U(y) has the form...
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1,544 citations
TL;DR: In this paper, an analysis of the first step of the decision-making process of an individual decision maker among alternative risky ventures is presented, in terms of a single dimension such as money, both for the utility functions and for the probability distributions.
Abstract: Publisher Summary The choice of an individual decision maker among alternative risky ventures may be regarded as a two-step procedure. The decision maker chooses an efficient set among all available portfolios, independently of his tastes or preferences. Then, the decision maker applies individual preferences to this set to choose the desired portfolio. The subject of this chapter is the analysis of the first step. It deals with optimal selection rules that minimize the efficient set by discarding any portfolio that is inefficient in the sense that it is inferior to a member of the efficient set, from point of view of each and every individual, when all individuals' utility functions are assumed to be of a given general class of admissible functions. The analysis presented in the chapter is carried out in terms of a single dimension such as money, both for the utility functions and for the probability distributions. However, the results may easily be extended, with minor changes in the theorems and the proofs, to the multivariate case. The chapter explains a necessary and sufficient condition for efficiency, when no further restrictions are imposed on the utility functions. It presents proofs of the optimal efficiency criterion in the presence of general risk aversion, that is, for concave utility functions.
1,160 citations