Living Standard, Social Welfare, and the Redistribution of Income in a Heterogeneous Population

Udo Ebert

Journal of Public Economic Theory, 2008, vol. 10, issue 5, pages 873-889

Abstract: The paper considers the redistribution of income in a population of households which may differ by type. The redistribution is based on (differences in) living standard and a principle of between-type-progressive transfers (BTPT). We characterize the relationship between a social welfare ordering satisfying the BTPT principle and the concept of living standard the principle is based on. It turns out that there is a close link: The ordering of living standard can be derived from the social welfare ordering. Conversely, the class of welfare orderings fulfilling the BTPT principle for a given concept of living standard can be completely described. Copyright © 2008 Wiley Periodicals, Inc..

Date: 2008

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