Vega, Casilda Lasso de la; Seidl, Christian - Society for the Study of Economic Inequality - ECINEQ - 2007
An income inequality measure satisfies the Pigou-Dalton transfer principle if progressive transfers decrease income … inequality. When transfers cause transaction costs, one can trace out the maximum leakage such that the transfer pays at the … margin. An income inequality measure is leaky-bucket consistent if the transaction costs of a transfer are neither negative …