Inequality measurement and the leaky-bucket paradox

Christian Seidl

Economics Bulletin, 2001, vol. 4, issue 6, 1-7

Abstract: The transfer principle requires inequality measures to decrease for mean preserving contractions. How much leakage of transfers can preserve inequality? Conditions are shown for leaky transfers to preserve inequality. We find that positive remainders with positive or negative leakage as well as negative remainders with positive leakage may occur. This constitutes the leaky-bucket paradox.

JEL-codes: D3 (search for similar items in EconPapers)
Date: 2001-07-05
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Citations: View citations in EconPapers (10)

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