Inequality, Polarisation and Welfare: Theory and Applications.

In this paper we explore the possibility of using the Atkinson (1970) - Kolm (1969) - Sen (1973) general ethical index in polarisation measurement. It is shown that though inequality and polarisation are two dissimilar concepts, different indices of inequality may be used to generate alternative indices of polarisation. A numerical illustration based on Indian household expenditure survey data is provided using several polarisation indices. Copyright 2001 by Blackwell Publishers Ltd/University of Adelaide and Flinders University of South Australia