Monotonicity and the Pareto Principle (Now Published in Economic Letters 45 (1994), Pp.447-450)
Posted: 21 Feb 2008
Date Written: October 1993
We examine the implications of three similar criteria that are commonly used in welfare economics and the analysis of inequality and poverty - income dominance, monotonicity and the Pareto principle - within the context of income-distribution comparisons. We show that whilst there is a simple logical relationship between the first two criteria, the third is neither implied by nor implies the other two unless an assumption of individual indifference to income distribution is made.
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