The economic literature has discussed at large about the best indicator of individual welfare: income or consumption. The implications of this choice are not only a matter for theoretical discussion but turn out to be very relevant for empirical analysis. Up to now, the debate has focused on the...

In Del Río and Ruiz-Castillo (2000) a new concept of intermediate inequality between the absolute and relative concept was proposed, and empirical procedures for a welfare analysis à la Shorrocks (1983) were developed. The aim of this paper is to use this methodology to difine a new concept,...