Handbook of Income Inequality Measurement

668 Pages·1999·47.41 MB·English

by  Jacques Silber (auth.)

HANDBOOI( OF
INCOME INEQUALITY MEASUREMENT
RECENTECONOMICTHOUGHTSERIES
Editors:
WarrenJ. Samuels WilliamDarity,Jr.
MichiganStateUniversity UniversityofNorthCarolina
EastLansing,Michigan,USA ChapelHill,NorthCarolina,USA
Otherbooksin theseries:
Davis,JohnB.: THESTATEOFTHEINTERPRETATIONOFKEYNES
Wells, Paul: POST-KEYNESIANECONOMICTHEORY
Hoover, KevinD.: MACROECONOMETRICS:
DEVELOPMENTS,TENSIONSANDPROSPECTS
Kendrick, JohnW.: THENEWSYSTEMSOFNATURALACCOUNTS
Groenewegen,John: TRANSACTIONCOSTECONOMICS ANDBEYOND
King, J.E.: ANALTERNATIVEMACROECONOMICTHEORY
Schofield,Nonnan: COLLECTIVEDECISION-MAKING: SOCIALCHOICE
ANDPOLITICALECONOMY
Menchik,PaulL.: HOUSEHOLDANDFAMILYECONOMICS
Gupta, KanhayaL.: EXPERIENCESWITHFINANCIALLIBERALIZATION
Cohen,AviJ., Hagemann,Harald,andSmithin,John:
MONEYFINANCIALINSTITUTIONSANDMACROECONOMICS
Mason, P.L. andWilliams, R.M.:
RACE, MARKETS,ANDSOCIALOUTCOMES
Gupta, SatyaDev: THEPOLITICALECONOMYOFGLOBALIZATION
Fisher,R.C.: INTERGOVERNMENTALFISCALRELATIONS
Mariussen, A. andWheelock,J.: HOUSEHOLDS,WORKANDECONOMIC
CHANGE: ACOMPARATIVEINSTITUTIONALPERSPECTIVE
Gupta, SatyaDev: GLOBALIZATION,GROWTHANDSUSTAINABILITY
Gupta,SatyaDev:DYNAMICSOFGLOBALIZATIONANDDEVELOPMENT
Medema,StevenG.: COASEANECONOMICS:LAWANDECONOMICSAND
THENEWINSTITUTIONALECONOMICS
Peoples,James: REGULATORYREFORMANDLABORMARKETS
Dennis,Ken: RATIONALITYINECONOMICS: ALTERNATIVE
PERSPECTIVES
Ahiakpor, JamesC.W.: KEYNESANDTHECLASSICSRECONSIDERED
Wolfson, Murray: THEPOLITICALECONOMYOFWARANDPEACE
Jain,A.K.: ECONOMICSOFCORRUPTION
Wheelock,J. andVail,J.: WORKANDIDLENESS: THEPOLITICAL
ECONOMYOFFULLEMPLOYMENT
Dean,JamesM.andWatennan,A. M.C.: RELITIONANDECONOMICS:
NORMATIVESOCIALTHEORY
Gupta, Kanhaya: FOREIGNAID:NEWPERSPECTIVES
MacDonald,R. andStein,J.: EQUILIBRIUMEXCHANGERATES
Chilcote,RonaldM.: THEPOLITICALECONOMYOFIMPERIALISM:
CRITICALAPPRAISALS
HANDBOOI( OF INCOME
INEQUALITY
MEASUREMENT
edited by
Ja cques Silber
Bar-Dan University, Israel
with a foreword by
Amartya Sen
1IIt...
"
SPRINGER SCIENCE+BUSINESS MEDIA, LLC
Library of Congress Cataloging-in-Publication Data
Handbook of income inequality measurement / edited by Jacques Silber ;
with a foreword by Amartya Sen.
P. cm. -- (Recent economic thought series ; 71)
Includes index.
ISBN 978-94-010-5897-1 ISBN 978-94-011-4413-1 (eBook)
DOI 10.1007/978-94-011-4413-1
1. Income distribution--Statistical methods. 1. Silber , Jacques.
II. Series.
HBS23.H361999
339.2--dc21 99-28390
CIP
Copyright © 1999 by Springer Science+Business Media New York Second Printing 2001.
Origina11y published by Kluwer Academic Publishers in 1999
Softcover reprint of the hardcover 1s t edition 1999
AlI rights reserved. No part of this publication may be reproduced, stored in a retrieval
system or transmitted in any form or by any means, mechanica1, photo-copying,
recording, or otherwise, without the prior written permission of the publisher,Springer
Science+Business Media, LLC.
Printed on acid-free pap er.
This printing is a digital duplication of the original edition.
"Who is rich? He who rejoices in his portion."
Chapters ofthe Fathers 4:4
CONTENTS
ListofContributors xi
Acknowledgements xv
Foreword xvii
AmartyaSen
Introduction:ThirtyYearsofIntensiveResearchonIncomeInequality
JacquesSilber
I. TheRationalFoundationsofIncomeInequalityMeasurement 19
Serge-ChristopheKolm
Comment:NripeshPodder
2. LinkingtheFunctionalandPersonalDistributionsofIncome 101
CamiloDagum
Comment:MichelMartinezandChristianMorrison
3. IncomeInequalityMeasurement:TheNormativeApproach 133
CharlesBlackorby,WalterBossertandDavidDonaldson
Comment:JohnA.Weymark
4. MeasuringInequality:TheAxiomaticApproach 163
SatyaR.Chakravarty
Comment:UdoEbert
5. TheMathematicalFoundationsofInequalityAnalysis 187
MichelLeBreton
Comment:WolfgangEichborn
6. StochasticDominanceandtheLorenzCurve 199
PatrickMoyes
Comment:ShlomoYitzhaki
7. TheMeasurementofIncomeInequality:TheSubjectiveApproach 227
YoramAmiel
Comment:BernardM.S.VanPraag
viii
8. IncomeInequalityMeasurement:TheStatisticalApproach 245
GiovanniM.Giorgi
Comment:Maria-PiaVictoria-Feser
9. EstimationoflnequalityIndices 269
FrankA.Cowell
Comment:AchilleLemmi
10. ParametricApproximationsoftheLorenzCurve 291
HangK.RyuandDaniel1.Slottje
Comment:JoanEsteban
II. TestsofSignificanceforLorenzPartialOrders 315
JohnA.BishopandJohnP.Formby
Comment:JosephL.GastwirthandTapanK.Nayak
12. HowDoIncomeSourcesAffectIncomeInequality? 341
RobertI.Lerman
Comment:LeaAchdut
13. InequalityDecompositionbyPopulationSubgroupsandtheAnalysis
ofInterdistributionalInequality 363
JosephDeutschandJacquesSilber
Comment:CeciliaA.Conrad
14. EquivalenceScalesandInequality 405
FrankA.CowellandMagdaMercader-Prats
Comment:YvesFluckiger
15. MultidimensionedApproachestoWelfareAnalysis 437
EsfandiarMaasoumi
Comment:FrancoisBourguignon
16. RedistributionalEffectsofProgressiveIncomeTaxes 485
PeterJ.Lambert
Comment:AndreasPfingsten
17. LifetimeversusAnnualIncomeDistribution 513
JohnCreedy
Comment:TimothySmeeding
18. HorizontalInequityMeasurement:ABasicReassessment 535
StephenP.JenkinsandPeter1.Lambert
Comment:RobertD.Plotnick
ix
19. TheMeasurementofIncomeMobility:AnIntroductiontotheLiterature 557
GaryS.FieldsandEfeA.Ok
Comment:ValentinoDardanoni
20. Inequality,WelfareandPoverty:ThreeInterrelatedPhenomena 599
NanakKakwani
Comment:MartinRavallion
Epilogue:ReflectionsonIncomeInequalityMeasurement 635
AnthonyB.Atkinson
Index 639
ListofContributors
Lea Achdut, Economic and Social Research Institute, The Labor Federation of Israel,
Jerusalem
Yoram Arniel, RuppinInstitute, Israel
Anthony B. Atkinson, Warden, Nuffield College, Oxford University, UK
John A. Bishop, EastCarolina University, NorthCarolina, USA
Charles Blackorby, University of British Columbia, Canada and GREQAM, Universite
d'Aix-Marseille, France
Walter Bossert, University ofWaterloo, Canada
Fran90is Bourguignon, DELTA (ENS), Paris, France
Satya Chakravarty, IndianStatistical Institute, Calcutta, India
CeciliaA. Conrad, PomonaCollege, California, USA
Frank A.Cowell, LondonSchool ofEconomics and Political Science, UK
John Creedy, University ofMelbourne, Australia
Camilo Dagum, University ofBologna, Italy
Valentino Dardanoni, Universitadi Palermo, Italy
Joseph Deutsch, Bar-HanUniversity, Israel
David Donaldson, University ofBritish Columbia, Canada
Udo Ebert, University ofOldenburg, Germany
Wolfgang Eichhorn, UniversitatKarlsruhe, Germany
Joan Esteban, Institutd'AnalisiEconomica, Barcelona, Spain
Gary S. Fields, Cornell University, New York, USA
Yves Fliickiger, Universite de Geneve, Switzerland
JohnP. Formby, University ofAlabama, USA
xii
Joseph L. Gastwirth, George Washington University, Washington, DC, USA
Giovanni M. Giorgi, "La Sapienza" University, Rome, Italy
StephenP. Jenkins, Institutefor Social and Economic Research, University ofEssex, UK
Nanak Kakwani, University ofNew SouthWales, Sydney, Australia
Serge-Christophe Kolm, EHESS, Paris, France
PeterJ. Lambert, University ofYork, UK
MichelLeBreton, Universited'Aix-Marseille2andInstitutUniversitairedeFrance, France.
Achille Lemmi, CRIDIRE, Universita degli Studidi Siena, Italy
Robert I. Lerman, The Urban Instituteand American University, Washington, DC, USA
Esfandiar Maasoumi, SouthernMethodist University, Texas, USA
MichelMartinez, DELTA(E.N.S),ParisandThema, UniversitedeCergy-Pontoise, France
Magda Mercader-Prats, Universitat Autonomade Barcelona, Spain
ChristianMorrisson, Universite de Paris I, France
Patrick Moyes, CNRS, IDEP and GRAPE, Universite Montesquieu, Bordeaux, France
Efe A. Ok, New York University, USA
TapanK. Nayak, George Washington University, Washington, DC, USA
Andreas Pfingsten, Institutfur Kreditwesen, UniversitiitMiinster, Germany
Robert D. Plotnick, University ofWashington, USA
Nripesh Podder, The University ofNew SouthWales, Australia
MartinRavallion, The World Bank, Washington, DC, USA
Hang K. Ryu, Chung Ang University, Seoul, SouthKorea
Amartya Sen, Master, Trinity College, Cambridge University, UK
Jacques Silber, Bar-Dan University, Israel
Daniel J. Slottje, SouthernMethodist University, Texas, USA
Timothy Smeeding, University ofSyracuse, New York, USA