TY - JOUR
T1 - Corrigendum to “Relation Between a Social Welfare Function and the Gini Index of Income Inequality” Journal of Economic Theory 4 (1972)
T2 - 98-100 ((****) ** (***–***), (), (10.1016/0022-0531(72)90167-6))
AU - Stark, Oded
N1 - Publisher Copyright:
© 2022
PY - 2022/12
Y1 - 2022/12
N2 - Fifty years ago Eytan Sheshinski constructed a composite measure of social welfare in which income per capita enters positively, and income inequality enters negatively: social welfare was defined as a strictly increasing function of the product of income per capita and one minus the Gini coefficient. In the case of a population of two persons whose incomes are distinct, Sheshinski states that social welfare depends only on the lower income, which reduces the social welfare function to the Rawlsian social welfare function. We show that this is not true: social welfare depends on both incomes, and there is no congruence with the Rawlsian perspective.
AB - Fifty years ago Eytan Sheshinski constructed a composite measure of social welfare in which income per capita enters positively, and income inequality enters negatively: social welfare was defined as a strictly increasing function of the product of income per capita and one minus the Gini coefficient. In the case of a population of two persons whose incomes are distinct, Sheshinski states that social welfare depends only on the lower income, which reduces the social welfare function to the Rawlsian social welfare function. We show that this is not true: social welfare depends on both incomes, and there is no congruence with the Rawlsian perspective.
KW - A link to the Rawlsian social welfare function
KW - Dependence of social welfare on the lower income
KW - Social welfare as a product of aggregate income and income equality
KW - Social welfare function
UR - http://www.scopus.com/inward/record.url?scp=85141781467&partnerID=8YFLogxK
U2 - 10.1016/j.jet.2022.105543
DO - 10.1016/j.jet.2022.105543
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AN - SCOPUS:85141781467
SN - 0022-0531
VL - 206
JO - Journal of Economic Theory
JF - Journal of Economic Theory
M1 - 105543
ER -