Monotonicity and the Pareto Principle (Now published in Economics Letters 45 (1994), pp.447-450)
Yoram Amiel and Frank A Cowell
Published October 1993
We examine the implications of three similar criteria that are commonly used in welfare economics and the analysis of inequality and poverty - income dominance, monotonicity and the Pareto principle - within the context of income-distribution comparisons. We show that whilst there is a simple logical relationship between the first two criteria, the third is neither implied by nor implies the other two unless an assumption of individual indifference to income distribution is made.
Paper Number DARP 006:
Download PDF - Monotonicity and the Pareto Principle (Now published in Economics Letters 45 (1994), pp.447-450)