Munich Personal RePEc Archive

Desigualdad y Bienestar en España y sus Comunidades Autónomas (1973-2003)

Goerlich, Francisco José and Villar, Antonio (2009): Desigualdad y Bienestar en España y sus Comunidades Autónomas (1973-2003). Published in: Revista de Economía Aplicada , Vol. XVII, No. 50 (2009): pp. 119-152.


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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.

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