In the distributive analysis, the constant relative inequality aversion utility function is a standard tool for ethical judgements of income distributions. The sole parameter ε of this function expresses a society’s aversion to inequality. However, the profession has not committed to the...

In this paper, the method of deriving the parameter ε of inequality aversion from a parametric distribution of incomes is proposed. It is assumed that a social decision-maker appraises welfare in income distributions by means of the constant inequality aversion utility function and that incomes...