On Bounded Dominance Criteria

Erwin Ooghe and Peter J. Lambert ()
Additional contact information
Erwin Ooghe: Catholic University of Leuven
Peter J. Lambert: University of Oregon Economics Department

University of Oregon Economics Department Working Papers from University of Oregon Economics Department

Abstract: A well-known criterion to make heterogeneous welfare comparisons is Atkinson and Bourguignon’s (1987) sequential generalized Lorenz dominance (SGLD) criterion. Recently, Fleurbaey, Hagneré and Trannoy (2003) convincingly argue that it contains unreasonable household utility profiles and suggest to put (lower and upper) bounds on the needs of the different household types. First, we generalize Atkinson and Bourguignon’s SGLD criterion, by introducing lower bounds in the household utility profiles. Second, we propose a new SGLD criterion by introducing upper bounds in a similar way. Third, we impose lower and upper bounds simultaneously and obtain a criterion which is intermediate between Ebert’s (1999) equivalence scale weighted approach and Atkinson and Bourguignon’s (1987) SGLD approach.

Keywords: sequential dominance; welfare; equivalence scales (search for similar items in EconPapers)
JEL-codes: D63 (search for similar items in EconPapers)
Pages: 20
Date: 2005-05-01, Revised 2005-05-01
References: Add references at CitEc
Citations:

Downloads: (external link)
http://economics.uoregon.edu/papers/UO-2005-6_Lambert_Dominance.pdf (application/pdf)

Related works:
Journal Article: On bounded dominance criteria (2006)
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:ore:uoecwp:2005-6

Access Statistics for this paper

More papers in University of Oregon Economics Department Working Papers from University of Oregon Economics Department Contact information at EDIRC.
Bibliographic data for series maintained by Bill Harbaugh ().