Using the zeta function to explain 'downside' and 'upside' inequality aversion

S Subramanian ()
Additional contact information
S Subramanian: Independent Scholar (formerly, Madras Institute of Development Studies)

Economics Bulletin, 2023, vol. 43, issue 1, 8 - 17

Abstract: This paper presents a single-parameter generalization of the Gini coefficient of inequality. The generalization yields a unique sequence of measures parametrized by the integer k which runs from minus infinity to plus infinity, and is based on the zeta function (defined on the set of integers). Using suitably normalized income weights, one can generate a family of welfare functions and associated inequality measures. For k belonging to {…,-3,-2,-1}, one has a family of decreasingly ‘upside inequality aversion' measures; when k is zero, one has the familiar ‘transfer-neutral' Gini coefficient; and for k belonging to {1,2,3,…}, one has a family of increasingly ‘downside inequality aversion' measures. As k tends to minus infinity, the underlying social welfare function mimics a utilitarian rule, and as k tends to plus infinity, the Rawlsian rule. When k is 1, the corresponding inequality measure turns out to be the Bonferroni coefficient.

Keywords: transfer-sensitivity; transfer-neutrality; reverse transfer-sensitivity; zeta function; Bentham; Rawls; Gini; Bonferroni (search for similar items in EconPapers)
JEL-codes: D3 D6 (search for similar items in EconPapers)
Date: 2023-03-30
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.accessecon.com/Pubs/EB/2023/Volume43/EB-23-V43-I1-P2.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ebl:ecbull:eb-22-00706

Access Statistics for this article

More articles in Economics Bulletin from AccessEcon
Bibliographic data for series maintained by John P. Conley ().