Nothing Special   »   [go: up one dir, main page]

IDEAS home Printed from https://ideas.repec.org/p/lvl/crrecr/1404.html
   My bibliography  Save this paper

Is Global Social Welfare Increasing? a Critical-Level Enquiry

Author

Listed:
  • Jean-Yves Duclos
  • John Cockburn
  • Agnès Zabsonré
Abstract
We assess whether global social welfare has improved in the last decades despite (or because of) the substantial increase in global population. We use for this purpose a relatively unknown but simple and attractive social evaluation approach called criticallevel generalized utilitarianism (CLGU). CLGU posits that social welfare increases with population size if and only if the new lives come with a level of living standards higher than that of a critical level. Despite its attractiveness, CLGU poses a number of practical difficulties that may explain why the literature has left it largely unexplored. We address these difficulties by developing new procedures for making partial CLGU orderings. The headline result is that we can robustly conclude that world welfare has increased between 1990 and 2005 if we judge that lives with per capita yearly consumption of more than $1,248 necessarily increase social welfare; the same conclusion applies to Sub-Saharan Africa if and only if we are willing to make that same judgement for lives with any level of per capita yearly consumption above $147. Otherwise, some of the admissible CLGU functions will judge the last two decades’ increase in global population size to have lowered global social welfare.

Suggested Citation

  • Jean-Yves Duclos & John Cockburn & Agnès Zabsonré, 2014. "Is Global Social Welfare Increasing? a Critical-Level Enquiry," Cahiers de recherche 1404, Centre de recherche sur les risques, les enjeux économiques, et les politiques publiques.
  • Handle: RePEc:lvl:crrecr:1404
    as

    Download full text from publisher

    File URL: http://www.crrep.ca/sites/crrep.ca/files/fichier_publications/crrep-2014-04.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. J. A. Mirrlees, 1967. "Optimum Growth when Technology is Changing," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 34(1), pages 95-124.
    2. repec:pri:rpdevs:deaton_price_indexes_inequality_and_the_measurement_of_world_poverty_aer. is not listed on IDEAS
    3. Branko Milanovic, 2002. "True World Income Distribution, 1988 and 1993: First Calculation Based on Household Surveys Alone," Economic Journal, Royal Economic Society, vol. 112(476), pages 51-92, January.
    4. Gary S. Becker & Tomas J. Philipson & Rodrigo R. Soares, 2005. "The Quantity and Quality of Life and the Evolution of World Inequality," American Economic Review, American Economic Association, vol. 95(1), pages 277-291, March.
    5. Blackorby,Charles & Bossert,Walter & Donaldson,David J., 2005. "Population Issues in Social Choice Theory, Welfare Economics, and Ethics," Cambridge Books, Cambridge University Press, number 9780521532587, October.
    6. Gary Anthony Gigliotti, 1983. "Total Utility, Overlapping Generations and Optimal Population," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 50(1), pages 71-86.
    7. Birdsall, Nancy & Kelley, Allen C. & Sinding, Steven (ed.), 2003. "Population Matters: Demographic Change, Economic Growth, and Poverty in the Developing World," OUP Catalogue, Oxford University Press, number 9780199261864.
    8. John S. Lane, 1975. "A Synthesis of the Ramsey-Meade Problems when Population Change is Endogenous," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 42(1), pages 57-66.
    9. Davies James & Hoy Michael, 1994. "The Normative Significance of Using Third-Degree Stochastic Dominance in Comparing Income Distributions," Journal of Economic Theory, Elsevier, vol. 64(2), pages 520-530, December.
    10. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-766, May.
    11. Kolm, Serge-Christophe, 1976. "Unequal inequalities. II," Journal of Economic Theory, Elsevier, vol. 13(1), pages 82-111, August.
    12. John COCKBURN & Jean-Yves DUCLOS & Agnès ZABSONRÉ, 2011. "Is the value of humanity increasing? A critical-level enquiry," Working Papers I13, FERDI.
    13. Shaohua Chien & Martin Ravallion, 2001. "How did the world's poorest fare in the 1990s?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 47(3), pages 283-300, September.
    14. Satya Chakravarty & Ravi Kanbur & Diganta Mukherjee, 2006. "Population growth and poverty measurement," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 26(3), pages 471-483, June.
    15. Stephan Klasen & Thorsten Nestmann, 2006. "Population, population density and technological change," Journal of Population Economics, Springer;European Society for Population Economics, vol. 19(3), pages 611-626, July.
    16. François Bourguignon & Christian Morrisson, 2002. "Inequality Among World Citizens: 1820-1992," American Economic Review, American Economic Association, vol. 92(4), pages 727-744, September.
    17. Anthony F. Shorrocks & James E. Foster, 1987. "Transfer Sensitive Inequality Measures," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 54(3), pages 485-497.
    18. Kolm, Serge-Christophe, 1976. "Unequal inequalities. I," Journal of Economic Theory, Elsevier, vol. 12(3), pages 416-442, June.
    19. Ravi Kanbur & Diganta Mukherjee, 2007. "Premature Mortality And Poverty Measurement," Bulletin of Economic Research, Wiley Blackwell, vol. 59(4), pages 339-359, October.
    20. Xavier Sala-i-Martin, 2002. "The World Distribution of Income (estimated from Individual Country Distributions)," NBER Working Papers 8933, National Bureau of Economic Research, Inc.
    21. Angus Deaton, 2010. "Price Indexes, Inequality, and the Measurement of World Poverty," American Economic Review, American Economic Association, vol. 100(1), pages 5-34, March.
    22. Shaohua Chen & Martin Ravallion, 2010. "The Developing World is Poorer than We Thought, But No Less Successful in the Fight Against Poverty," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 125(4), pages 1577-1625.
    23. repec:pri:rpdevs:presidential%20address%2017january%202010%20all.pdf is not listed on IDEAS
    24. John BROOME, 1992. "The Value of Living," Discussion Papers (REL - Recherches Economiques de Louvain) 1992021, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    25. Kakwani, Nanak, 1980. "On a Class of Poverty Measures," Econometrica, Econometric Society, vol. 48(2), pages 437-446, March.
    26. Samuelson, Paul A, 1975. "The Optimum Growth Rate for Population," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 16(3), pages 531-538, October.
    27. Xavier Sala-i-Martin, 2006. "The World Distribution of Income: Falling Poverty and … Convergence, Period," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 121(2), pages 351-397.
    28. Shaohua Chen & Martin Ravallion, 2004. "How Have the World's Poorest Fared since the Early 1980s?," The World Bank Research Observer, World Bank, vol. 19(2), pages 141-169.
    29. Bussolo, Maurizio & De Hoyos, Rafael E. & Medvedev, Denis & van der Mensbrugghe, Dominique, 2007. "Global growth and distribution : are China and India reshaping the world?," Policy Research Working Paper Series 4392, The World Bank.
    30. repec:pri:rpdevs:presidential%20address%2017january%202010%20all is not listed on IDEAS
    31. Hasan, Mohammad S., 2010. "The long-run relationship between population and per capita income growth in China," Journal of Policy Modeling, Elsevier, vol. 32(3), pages 355-372, May.
    32. Ng, Yew-Kwang, 1986. "Social criteria for evaluating population change: An alternative to the Blackorby-Donaldson criterion," Journal of Public Economics, Elsevier, vol. 29(3), pages 375-381, April.
    33. P. S. Dasgupta, 1969. "On the Concept of Optimum Population," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 36(3), pages 295-318.
    34. Sudhir Anand & Paul Segal, 2008. "What Do We Know about Global Income Inequality?," Journal of Economic Literature, American Economic Association, vol. 46(1), pages 57-94, March.
    35. Dasgupta, Partha, 2010. "The Place of Nature in Economic Development," Handbook of Development Economics, in: Dani Rodrik & Mark Rosenzweig (ed.), Handbook of Development Economics, edition 1, volume 5, chapter 0, pages 4977-5046, Elsevier.
    36. Diganta Mukherjee, 2008. "Poverty measures incorporating variable rate of alleviation due to population growth," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 31(1), pages 97-107, June.
    37. Fishburn, Peter C. & Willig, Robert D., 1984. "Transfer principles in income redistribution," Journal of Public Economics, Elsevier, vol. 25(3), pages 323-328, December.
    38. Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
    39. Blackorby, Charles & Donaldson, David, 1978. "Measures of relative equality and their meaning in terms of social welfare," Journal of Economic Theory, Elsevier, vol. 18(1), pages 59-80, June.
    40. Tsang, Eric W. K., 2014. "Old and New," Management and Organization Review, Cambridge University Press, vol. 10(03), pages 390-390, November.
    41. Nerlove, Marc & Razin, Assaf & Sadka, Efraim, 1986. "Endogenous Population with Public Goods and Malthusian Fixed Resources: Efficiency or Market Failure," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 27(3), pages 601-609, October.
    42. Mill, John Stuart, 1859. "On Liberty," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number mill1859.
    43. Blackorby, Charles & Donaldson, David, 1984. "Social criteria for evaluating population change," Journal of Public Economics, Elsevier, vol. 25(1-2), pages 13-33, November.
    44. Charles Blackorby & Walter Bossert & David Donaldson, 1996. "Quasi-orderings and population ethics," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 13(2), pages 129-150, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Thomas Dickson Ndamsa & Gladys Njang & Francis Menjo Baye, 2020. "Social Welfare Consequences of the Radius of Employment Decency," Athens Journal of Business & Economics, Athens Institute for Education and Research (ATINER), vol. 6(3), pages 211-238, April.
    2. Jean‐Yves Duclos & Bouba Housseini, 2015. "Quality, quantity and duration of lives," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 48(1), pages 1-27, February.
    3. Jean-Yves Duclos & Bouba Housseini, 2015. "Does Quality, Quantity and Duration of Lives," Cahiers de recherche 1501, Chaire de recherche Industrielle Alliance sur les enjeux économiques des changements démographiques.
    4. Jean-Yves DUCLOS & Bouba HOUSSEINI, 2015. "Quality, Quantity and Duration of Lives," Working Papers P118, FERDI.
    5. Jean-Yves Duclos & Luca Tiberti, 2016. "Multidimensional poverty indices: A critical assessment," Cahiers de recherche 1602, CIRPEE.
    6. Jean-Yves Duclos & Bouba Housseini, 2015. "Quality, Quantity and Duration of Lives," CIRANO Working Papers 2015s-12, CIRANO.
    7. A.V. Popov & T.S. Soloveva, 2021. "The Present and Future of the Employment Paradigm in the Context of Global Changes," Journal of Applied Economic Research, Graduate School of Economics and Management, Ural Federal University, vol. 20(2), pages 327-355.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. John COCKBURN & Jean-Yves DUCLOS & Agnès ZABSONRÉ, 2011. "Is the value of humanity increasing? A critical-level enquiry," Working Papers I13, FERDI.
    2. Anthony B. Atkinson & Andrea Brandolini, 2010. "On Analyzing the World Distribution of Income," The World Bank Economic Review, World Bank, vol. 24(1), pages 1-37, January.
    3. Pinkovskiy, Maxim L., 2013. "World welfare is rising: Estimation using nonparametric bounds on welfare measures," Journal of Public Economics, Elsevier, vol. 97(C), pages 176-195.
    4. Facundo Alvaredo & Leonardo Gasparini, 2013. "Recent Trends in Inequality and Poverty in Developing Countries," CEDLAS, Working Papers 0151, CEDLAS, Universidad Nacional de La Plata.
    5. Miguel Niño‐Zarazúa & Laurence Roope & Finn Tarp, 2017. "Global Inequality: Relatively Lower, Absolutely Higher," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 63(4), pages 661-684, December.
    6. Rolf Aaberge, 2009. "Ranking intersecting Lorenz curves," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 33(2), pages 235-259, August.
    7. Moatsos Michail, 2016. "Global Absolute Poverty: Behind the Veil of Dollars," Journal of Globalization and Development, De Gruyter, vol. 7(2), pages 1-28, December.
    8. Maxim Pinkovskiy & Xavier Sala-i-Martin, 2015. "Lights, Camera,... Income! Estimating Poverty Using National Accounts, Survey Means and Lights," LIS Working papers 645, LIS Cross-National Data Center in Luxembourg.
    9. Jean‐Yves Duclos & Paul Makdissi, 2004. "Restricted and Unrestricted Dominance for Welfare, Inequality, and Poverty Orderings," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 6(1), pages 145-164, February.
    10. Maxim L. Pinkovskiy & Xavier X. Sala-i-Martin, 2014. "Lights, camera,...income! Estimating poverty using national accounts, survey means, and lights," Staff Reports 669, Federal Reserve Bank of New York.
    11. Dhongde, Shatakshee & Minoiu, Camelia, 2013. "Global Poverty Estimates: A Sensitivity Analysis," World Development, Elsevier, vol. 44(C), pages 1-13.
    12. Ferreira, Francisco H.G. & Ravallion, Martin, 2008. "Global poverty and inequality : a review of the evidence," Policy Research Working Paper Series 4623, The World Bank.
    13. La-Bhus Fah Jirasavetakul & Christoph Lakner, 2020. "The Distribution of Consumption Expenditure in Sub-Saharan Africa: The Inequality Among All Africans," Journal of African Economies, Centre for the Study of African Economies, vol. 29(1), pages 1-25.
    14. Jean-Yves Duclos & Paul Makdissi & Quentin Wodon, 2008. "Socially Improving Tax Reforms," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 49(4), pages 1505-1537, November.
    15. Kristof Bosmans & Lucio Esposito & Peter Lambert, 2011. "New perspectives on a more-or-less familiar poverty index," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 36(2), pages 241-247, February.
    16. Ximing Wu & Andreas Savvides & Thanasis Stengos, 2008. "The Global Joint Distribution of Income and Health," Working Papers 0807, University of Guelph, Department of Economics and Finance.
    17. Francesco Andreoli & Claudio Zoli, 2020. "From unidimensional to multidimensional inequality: a review," METRON, Springer;Sapienza Università di Roma, vol. 78(1), pages 5-42, April.
    18. Gayant, Jean-Pascal & Le Pape, Nicolas, 2017. "Increasing Nth degree inequality," Journal of Mathematical Economics, Elsevier, vol. 70(C), pages 185-189.
    19. Niño-Zarazúa, Miguel & Roope, Laurence & Tarp, Finn, 2014. "Global interpersonal inequality Trends and measurement," MPRA Paper 52881, University Library of Munich, Germany.
    20. Chateauneuf, Alain & Gajdos, Thibault & Wilthien, Pierre-Henry, 2002. "The Principle of Strong Diminishing Transfer," Journal of Economic Theory, Elsevier, vol. 103(2), pages 311-333, April.

    More about this item

    Keywords

    Global welfare; Critical-level generalized utilitarianism; Social evaluation; Welfare dominance; Critical level; Population growth;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:lvl:crrecr:1404. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Manuel Paradis (email available below). General contact details of provider: https://edirc.repec.org/data/crrepca.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.