TY - JOUR
T1 - Decomposing Bivariate Dominance for Social Welfare Comparisons
AU - Marling, Tina Gottschalk
AU - Range, Troels Martin
AU - Sudhölter, Peter
AU - Østerdal, Lars Peter
N1 - Published online: 5. July 2018.
PY - 2018/9
Y1 - 2018/9
N2 - 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.
AB - 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.
U2 - 10.1016/j.mathsocsci.2018.06.005
DO - 10.1016/j.mathsocsci.2018.06.005
M3 - Journal article
SN - 0165-4896
VL - 95
SP - 1
EP - 8
JO - Mathematical Social Sciences
JF - Mathematical Social Sciences
ER -