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Desigualdad y Bienestar en España y sus Comunidades Autónomas (1973-2003)
[Inequality and welfare in Spain and its Autonomous Communities]

Author

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  • Goerlich, Francisco José
  • Villar, Antonio
Abstract
This paper presents an integration between the normative approach of Dalton-Atkinson-Sen to inequality measurement with the positive approach related to the statistical dispersion or the generalized entropy family of inequality indexes. Given a social valuation formula that expresses the aggregate social value as a weighted sum of particular incomes, where the weights represents the marginal social value of the individuals in the society, our approach selects a particular inequality index, the original Theil (1967) index, T, from the imposition on the social valuation formula, a minimal set of sensible conditions. Eventually an empirical exercise based on the Household Budget Surveys follows, that shows how improvements in the distribution have contributed to the increase in welfare beyond the observed increase in per capita income.

Suggested Citation

  • Goerlich, Francisco José & Villar, Antonio, 2009. "Desigualdad y Bienestar en España y sus Comunidades Autónomas (1973-2003) [Inequality and welfare in Spain and its Autonomous Communities]," MPRA Paper 19487, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:19487
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    References listed on IDEAS

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    1. repec:cte:derepe:de20070222 is not listed on IDEAS
    2. Lambert, Peter J & Aronson, J Richard, 1993. "Inequality Decomposition Analysis and the Gini Coefficient Revisited," Economic Journal, Royal Economic Society, vol. 103(420), pages 1221-1227, September.
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    More about this item

    Keywords

    Inequality; Income Distribution; Welfare; Household Budget Surveys;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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