In most welfare analyses, especially in the literature on normative inequality measurement, it is a commonplace to assume a direct relationship between the distribution of income and social welfare. As a result, this relationship is formally summarized by a single function, called a reduced-form...

Income variablity reduces social welfare if individuals are risk averse, and it is likely to increase inequality if poorer households are more vulnerable to shocks. Using a simple method to estimate risk-adjusted measures of inequality and welfare and wage data from Mexico, this note shows that...

The Gini income elasticity has been used to assess the impact of marginal proportional changes in income from a given source on inequality in total income. This note extends the methodology to take into account income variability.

This paper extends the previous literature on the normative links between the measurement of poverty, social welfare and inequality. We show how, when the range of possible poverty lines is unbounded above, a robust ranking of absolute poverty may be interpreted as a robust ranking of social...

In 1990, Cerioli and Zani introduced an operational multivariate method to analyse and measure poverty, aiming at incorporating several dimensions of poverty. As Dagum and Costa [2004] showed, this study applies the fuzzy set theoretic approach and thus making quantitatively operational the...

This paper develops criteria for a new concept of restricted inequality dominance and show how they relate to criteria for comparing relative poverty. The results warn against the use of some popular indices of inequality.\ They do, however, suggest an interesting extension of the Schutz...

This paper proposes techniques to test for whether growth has been pro-poor. We first review different definitions of pro-poorness and argue for the use of methods that can generate results that are robust over classes of pro-poor measures and ranges of poverty lines. We then provide statistical...

The paper explores different applications of the Shapley value for either inequality or poverty measures. We first investigate the problem of source decomposition of inequality measures, the so-called additive income sources inequality games, baed on the Shapley Value, introduced by Chantreuil...