Decomposing Bivariate Dominance for Social Welfare Comparisons

Tina Gottschalk Marling, Troels Martin Range, Peter Sudhölter, Lars Peter Østerdal

Research output: Contribution to journalJournal articleResearchpeer-review

Abstract

The principal dominance concept for inequality-averse multidimensional social welfare comparisons, commonly known as lower orthant dominance, entails less or equal mass on all lower hyperrectangles of outcomes. Recently, it was shown that bivariate lower orthant dominance can be characterized in terms of two elementary mass transfer operations: diminishing mass transfer (reducing welfare) and correlation-increasing switches (increasing inequality). In this paper we provide a constructive algorithm, which decomposes the mass transfers into such welfare reductions and inequality increases.
The principal dominance concept for inequality-averse multidimensional social welfare comparisons, commonly known as lower orthant dominance, entails less or equal mass on all lower hyperrectangles of outcomes. Recently, it was shown that bivariate lower orthant dominance can be characterized in terms of two elementary mass transfer operations: diminishing mass transfer (reducing welfare) and correlation-increasing switches (increasing inequality). In this paper we provide a constructive algorithm, which decomposes the mass transfers into such welfare reductions and inequality increases.
LanguageEnglish
JournalMathematical Social Sciences
Volume95
Pages1-8
Number of pages8
ISSN0165-4896
DOIs
StatePublished - Sep 2018

Bibliographical note

Epub ahead of print. Published online: 5. July 2018

Cite this

Marling, Tina Gottschalk ; Range, Troels Martin ; Sudhölter, Peter ; Østerdal, Lars Peter. / Decomposing Bivariate Dominance for Social Welfare Comparisons. In: Mathematical Social Sciences. 2018 ; Vol. 95. pp. 1-8
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Decomposing Bivariate Dominance for Social Welfare Comparisons. / Marling, Tina Gottschalk ; Range, Troels Martin; Sudhölter, Peter; Østerdal, Lars Peter.

In: Mathematical Social Sciences, Vol. 95, 09.2018, p. 1-8.

Research output: Contribution to journalJournal articleResearchpeer-review

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