Frank A Cowell and Udo Ebert
Published December 2006
Using a simple axiomatic structure we characterise two classes of inequality indices - absolute and relative - that take into account “envy” in the income distribution. The concept of envy incorporated here concerns the distance of each person’s income from his or her immediately richer neighbour. This is shown to be similar to justice concepts based on income relativities.
Paper Number DARP 088:
Download PDF - Inequality and Envy
JEL Classification: D63