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Size and distribution trade-offs for the leximin ordering

Abstract  

A relative invariant and an absolute invariant inequality ordering satisfying extreme bottom-sensitivity, are proposed. It
is shown that the leximin social welfare ordering can be expressed in terms of a ranking of distributions on the sole basis
of their size, measured by the mean, and the degree of inequality, measured according to these inequality concepts. Leximin
thus exhibits extreme bottom-sensitivity. This property does not withstand that leximin prefers a larger size of the cake
at the cost of higher inequality in a number of cases. These trade-offs between size and equality are characterised in terms
of degrees of dominance of the lower parts of the ordinary and absolute Lorenz curves that are accepted by leximin for a given
increase in the mean.

  • Content Type Journal Article
  • Pages 1-12
  • DOI 10.1007/s10888-012-9219-2
  • Authors
    • Bart CapĂ©au, Research Institute for Work and Society (HIVA), K.U.LEUVEN, Parkstraat 47, B-3000 Leuven, Belgium
    • Journal Journal of Economic Inequality
    • Online ISSN 1573-8701
    • Print ISSN 1569-1721
Posted in: Journal Article Abstracts on 03/01/2012 | Link to this post on IFP |
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