Polarization is a concept which is defined over the distribution of income. It is clear that it does not fit into the framework of the traditional Bergson-type Social Welfare Function. The aim of this paper is to investigate whether the concept can fit into the framework of the theory of...

As a two-parameter model that satisfies stochastic dominance, the mean-extended Gini model is used to build efficient portfolios. The model quantifies risk aversion heterogeneity in capital markets. In a simple Edgeworth box framework, we show how capital market equilibrium is achieved for risky...

Many legislatures and advisers, frustrated by the existence of widespread tax evasion, are tempted to increase the investigative and the punitive power of the tax administration. In order to ensure that this additional power is not abused, an analysis of the decision-making process of the tax...

Using national income and expenditure distribution data from 119 countries, the authors decompose total income inequality between the individuals in the world, by continent and by"region"(countries grouped by income level). They use a Gini decomposition that allows for an exact breakdown...