The objective of this paper is to propose a model to assess risk for banks. Its main innovation is to incorporate endogenous interaction between banks, recognising that the actual risk to which an individual bank is exposed also depends on its interaction with other banks and other private...

This paper proposes a measure of financial fragility that is based on economic welfare in a general equilbrium model calibrated against UK data. The model comprises a household sector, three active heterogeneous banks, a central bank/regulator, incomplete markets, and endogenous default. We...

The paper presents an abstract definition of linear inequality concepts leading to linearly invariant inequality measures and characterizes the class of linear concepts completely. Two general methods of deriving ethical measures are proposed. They imply an Atkinson-Kolm-Sen index and a new dual...

This article provides a brief overview of the key issues in inequality measurement and has been prepared for inclusion in the second edition of The New Palgrave.

It is known from the literature on uncertainty that in cases where individuals express a preference for a high win-probability bet over a bet with high winnings they nevertheless will bid more to obtain the bet with high winnings. We investigate whether a similar phenomenon applies in the...

At the heart of any distributional analysis there is the problem of allowing for differences in people's non-income characteristics. We examine the role of standard equivalence scales in distributional comparisons and the welfare implications of the basis for constructing equivalence scales. We...

We stablish a general relationship between the standard form of the individualistic social-welfare function and the "reduced-form" version that is expressed in terms of inequality and mean income. This shows the relationship between the property of monotonicity and the slope of the...

The analysis of inequality is placed in the context of recent developments in economics and statistics. Prepared for Handbook of Income Distribution, edited by A B Atkinson and F Bourguignon.

This article is a comparative analysis of the sources of income inequality in four countries, namely Japan, South Korea, Taiwan and the United Kingdom. It relies upon decompositions of inequality measures by population groups and income sources (except for Japan because of data limitations)....