Social tension order: A new approach to inequality reduction
Philippe Bich
- Fonction : Auteur
- PersonId : 12752
- IdHAL : philippe-bich
- ORCID : 0000-0001-9011-7437
- IdRef : 17634232X
Alain Chateauneuf
- Fonction : Auteur
- PersonId : 838103
- IdRef : 058577122
Caroline Ventura
- Fonction : Auteur
- PersonId : 954283
- IdRef : 143321978
Résumé
We introduce a new order on income distributions that we call “social tension” order, based on the concepts of absolute satisfaction and absolute deprivation, as introduced by Chakravarty (1997) (see also Chateauneuf and Moyes, 2006). Our order postulates that antagonist groups of individuals behave differently when comparing welfare: each “poor” individual compares herself with richer individuals, while each “rich” individual compares herself with poorer ones. We prove that reducing social tension corresponds to fair taxation and provide an explicit algorithm that allows for transitioning from a dominated distribution to a dominating one through a sequence of elementary transfers that respect our order. Additionally, we construct a new index from the “social tension” order, which may better capture the various sources of inequality compared to the Gini index. Lastly, we characterize those expected utility functions that respect our order.
Domaines
Economies et financesFormat du dépôt | Notice |
---|---|
Type de dépôt | Article dans une revue |
Titre |
en
Social tension order: A new approach to inequality reduction
|
Résumé |
en
We introduce a new order on income distributions that we call “social tension” order, based on the concepts of absolute satisfaction and absolute deprivation, as introduced by Chakravarty (1997) (see also Chateauneuf and Moyes, 2006). Our order postulates that antagonist groups of individuals behave differently when comparing welfare: each “poor” individual compares herself with richer individuals, while each “rich” individual compares herself with poorer ones. We prove that reducing social tension corresponds to fair taxation and provide an explicit algorithm that allows for transitioning from a dominated distribution to a dominating one through a sequence of elementary transfers that respect our order. Additionally, we construct a new index from the “social tension” order, which may better capture the various sources of inequality compared to the Gini index. Lastly, we characterize those expected utility functions that respect our order.
|
Auteur(s) |
Philippe Bich
1, 2
, Alain Chateauneuf
1, 2, 3
, Caroline Ventura
2
1
PSE -
Paris School of Economics
( 301309 )
- 48 boulevard Jourdan 75014 Paris
- France
2
CES -
Centre d'économie de la Sorbonne
( 15080 )
- Maison des Sciences Économiques - 106-112 Boulevard de l'Hôpital - 75647 Paris Cedex 13
- France
3
IPAG Business School
( 542840 )
- 184 boulevard Saint-Germain, 75006 Paris
- France
|
Vulgarisation |
Non
|
Audience |
Internationale
|
Comité de lecture |
Oui
|
Langue du document |
Anglais
|
Nom de la revue |
|
Date de publication |
2023-10
|
Volume |
108
|
Page/Identifiant |
102886
|
Date de production/écriture |
2022
|
Domaine(s) |
|
DOI | 10.1016/j.jmateco.2023.102886 |
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