 Toward an Inequality-Sensitive Measure of Development: The Unidimensional CaseChapter Chapter 2 in Measuring Development, 2020, pp 51-83 from Springer Abstract: Abstract This book seeks an inequality-sensitive measureMeasures of development. In this chapter, we review the standard theory in this regard for the case where there is a single dimension of development (say, income). Part of the theory is concerned with the question how we should measure inequality. However, inequality ranking is only one part of development ranking. The efficiency aspect is also to be taken into account. The important question for us is whether we can arrive at a complete development ranking, i.e. whether we can rank all pairs of economies in terms of development. It turns out that while the answer to the question is, in general, in the negative, for any given pair of economies, it is possible to formulate necessary and sufficient conditions (in terms of the observed data on incomes of the individuals in the economies) under which the two economies can be ranked. The notions of Lorenz dominance and generalized Lorenz dominance play important roles in these conditions. Whenever these conditions are violated, however, there would be ranking failuresRanking failure, i.e. we would be unable to rank the two economies in terms of their levels of development. Date: 2020 There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:spr:thechp:978-981-15-6161-0_2 Ordering information: This item can be ordered from DOI: 10.1007/978-981-15-6161-0_2 Access Statistics for this chapter More chapters in Themes in Economics from Springer |
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