Abstract
The use of equivalence scales when measuring income inequality can lead to the paradoxical result that transferring money from poor to wealthy households may reduce measured inequality. This paper explains this result and restates the Pigou-Dalton transfer axiom in a way that gets around this counterintuitive outcome.
Original language | English (US) |
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Pages (from-to) | 211-216 |
Number of pages | 6 |
Journal | Journal of Public Economics |
Volume | 44 |
Issue number | 2 |
DOIs | |
State | Published - Mar 1991 |