High levels of economic inequality may lead to lower economic growth and can have negative social and political impacts … significantly more than previously suggested. Currently, the average Gini index (a common measure) of inequality in Eastern Europe … is about 3 percentage points higher than in the rest of Europe. This rise in inequality was initially driven by …

In the distributive analysis, the constant relative inequality aversion utility function is a standard tool for ethical … judgements of income distributions. The sole parameter ε of this function expresses a society’s aversion to inequality. However … inequality aversion utility function using datasets available from the Luxembourg Income Study Database. We utilise the method of …