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Social Choice and Welfare

, Volume 16, Issue 2, pp 183–196 | Cite as

Intersecting generalized Lorenz curves and the Gini index

  • Claudio Zoli
Article

Abstract.

As is well known, the use of the Gini coefficient in comparisons is inconsistent with an utilitarian approach. This paper analyzes the Gini coefficient's normative significance in welfare comparisons evaluating income distributions according to Yaari dual social welfare function. When generalized Lorenz curves cross once, the Gini coefficient is decisive in determining welfare rankings if we strengthen the Principle of Transfers applying a Positional version of the Principle of Transfer Sensitivity. This result can also be extended to the case of multiple crossings.

Keywords

Social Welfare Income Distribution Normative Significance Gini Coefficient Gini Index 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer-Verlag Berlin Heidelberg 1999

Authors and Affiliations

  • Claudio Zoli
    • 1
  1. 1.Department of Economics, University of Bologna, Bologna, ItalyIT

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