A General Class of Additively Decomposable Inequality Measures

Posted: 25 Sep 1999

See all articles by James E. Foster

James E. Foster

George Washington University

Artyom A. Shneyerov

University of British Columbia (UBC) - Department of Economics

Abstract

This paper presents and characterizes a two-parameter class of inequality measures that contains thegeneralized entropy measures, the variance of logarithms, the path independent measures of Foster and Shneyerov (1999) and several new classes of measures. The key axiom is a generalized form of additive decomposability which defines the within-group and between-group inequality terms using a generalized mean in place of the arithmetic mean. Our characterization result is proved without invoking any regularity assumption (such as continuity) on the functional form of the inequality measure; instead, it relies on a minimal form of the transfer principle - or consistency with the Lorenz criterion - over two-person distributions.

JEL Classification: C43, D31, D63, O15

Suggested Citation

Foster, James E. and Shneyerov, Artyom A., A General Class of Additively Decomposable Inequality Measures. Available at SSRN: https://ssrn.com/abstract=176551

James E. Foster (Contact Author)

George Washington University ( email )

2121 I Street NW
Washington, DC 20052
United States

Artyom A. Shneyerov

University of British Columbia (UBC) - Department of Economics ( email )

997-1873 East Mall
Vancouver, BC V6T 1Z1
Canada

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