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Living Standard,Social Welfare,and the Redistribution of Income in a Heterogeneous Population
Authors:UDO EBERT
Institution:Department of Economics, University of Oldenburg
Abstract:The paper considers the redistribution of income in a population of households which may differ by type. The redistribution is based on (differences in) living standard and a principle of betweentype‐progressive transfers (BTPT). We characterize the relationship between a social welfare ordering satisfying the BTPT principle and the concept of living standard the principle is based on. It turns out that there is a close link: The ordering of living standard can be derived from the social welfare ordering. Conversely, the class of welfare orderings fulfilling the BTPT principle for a given concept of living standard can be completely described.
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