On the Measurement of Inequality under Uncertainty

Elchanan Ben-Porath*, Itzhak Gilboa, David Schmeidler

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

72 Scopus citations

Abstract

To take into account both ex ante and ex post inequality considerations, one has to deal with inequality and uncertainty simultaneously. Under certainty, much of the literature has focused on "comonotonically linear" indices: functionals that are linear on cones of income profiles that agree on the social ranking of the individuals. This family generalizes both the Gini index and the egalitarian index(minimal income). However, it does not include functionals such as the average of expected-Gini and Gini-of-expectation. In contrast, the family of min-of-means functionals is rich enough for this purpose.Journal of Economic LiteratureClassification Numbers: D31, D63, D81.

Original languageAmerican English
Pages (from-to)194-204
Number of pages11
JournalJournal of Economic Theory
Volume75
Issue number1
DOIs
StatePublished - Jul 1997
Externally publishedYes

Bibliographical note

Also appeared in Uncertainty in Economic Theory : Essays in Honor of David Schmeidler's 65th Birthday edited by Itzhak Gilboa (London ; New York : Routledge, 2004), p. 531-542

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