Inequality measurement and the leaky-bucket paradox

The transfer principle requires inequality measures to decrease for mean preserving contractions. How much leakage of transfers can preserve inequality? Conditions are shown for leaky transfers to preserve inequality. We find that positive remainders with positive or negative leakage as well as negative remainders with positive leakage may occur. This constitutes the leaky-bucket paradox.

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Year of publication:	2001
Authors:	Seidl, Christian
Published in:	Economics Bulletin. - AccessEcon, ISSN 1545-2921. - Vol. 4.2001, 6, p. 1-7
Publisher:	AccessEcon

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Extent:	application/pdf
Type of publication:	Article
Language:	English
Classification:	D3 - Distribution
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005110601