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Ethical Social Index Numbers

  • Book
  • © 1990

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Table of contents (9 chapters)

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About this book

In this book we are concerned with income profile based ethical social index numbers. An ethical index is designed from an explicit social evaluation function with a specific purpose in mind. For example, an ethical relative inequality index determines the fraction of total income that could be saved without any welfare loss if society distri­ buted incomes equally. Ethical indices contrast with descriptive indices which are de­ rived without using any concept of social welfare. Needless to say, ethical indices are not meant to supplant descriptive indices, rather they are constructed with different aims. We begin Chapter 1 with a formal discussion on the concept of a social evaluation function. In the main body of this chapter we consider the problem of ranking income profiles using a social evaluation function. In Chapter 2 we set about analyzing alter­ native approaches to the measurement of inequality. In Chapter 3 we focus our attention on the Gini index, the most frequently used index of inequality, and its extensions. In Chapter 4 we formulate the notion of an ethical distance function that measures welfare of one population relative to another. Chapter 5 is devoted to quantifications and discussions of alternative definitions of relative deprivation put forward by Runci­ man(1966).

Authors and Affiliations

  • Institut für Wirtschaftstheorie und OR, Universität Karlsruhe, Karlsruhe, Germany

    Satya R. Chakravarty

  • Economic Research Unit, Indian Statistical Institute, Calcutta, India

    Satya R. Chakravarty

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