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A note on the normative content of the Atkinson inequality aversion parameter
Journal article   Open access   Peer reviewed

A note on the normative content of the Atkinson inequality aversion parameter

Marc Dubois
Economics Bulletin
2016

Abstract

D - Microeconomics/D.D6 - Welfare Economics/D.D6.D63 - Equity, Justice, Inequality, and Other Normative Criteria and Measurement D - Microeconomics/D.D3 - Distribution/D.D3.D31 - Personal Income, Wealth, and Their Distributions
The aim of the note is to parametrize necessary and sufficient conditions for the Atkinson social welfare functions to satisfy proportional transfer principles. These social welfare functions satisfy the proportional ex post transfer principle if, and only if, the inequality aversion parameter is no smaller than 1. Moreover, these social welfare functions satisfy the proportional transfer principle if, and only if, the inequality aversion parameter is greater than 2. The results are illustrated with French data.
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