Inequality and Envy

Cowell, Frank; Ebert, Udo

Download This Paper

Open PDF in Browser

Add Paper to My Library

Inequality and Envy

LSE STICERD Research Paper No. 88

15 Pages Posted: 9 Apr 2008

See all articles by Frank Cowell

Frank Cowell

London School of Economics & Political Science (LSE) - Suntory and Toyota International Centres for Economics and Related Disciplines (STICERD)

Udo Ebert

University of Oldenburg - Department of Economics and Statistics

Date Written: December 2006

Abstract

Using a simple axiomatic structure we characterise two classes of inequality indices - absolute and relative - that take into account "envy" in the income distribution. The concept of envy incorporated here concerns the distance of each person's income from his or her immediately richer neighbour. This is shown to be similar to justice concepts based on income relativities.

JEL Classification: D63

Suggested Citation: Suggested Citation

Cowell, Frank A. and Ebert, Udo, Inequality and Envy (December 2006). LSE STICERD Research Paper No. 88, Available at SSRN: https://ssrn.com/abstract=1117707