Simon Haastert

Thematic seminars
big data and econometrics seminar

Simon Haastert

University of Münster
Inequality measurement - a unifying framework for multidimensionality, dynamics and uncertainty
Venue

IBD

Îlot Bernard du Bois

AMU - AMSE
5-9 boulevard Maurice Bourdet
13001 Marseille

Date(s)
Tuesday, September 24 2024| 2:00pm to 3:15pm
Contact(s)

Sullivan Hué: sullivan.hue[at]univ-amu.fr
Michel Lubrano: michel.lubrano[at]univ-amu.fr

Abstract

This paper introduces a novel technique to measure dynamic, multidimensional inequality. We adopt a welfarist perspective and propose a dynamic social evaluation function comprising additively separable value functions. For each state variable, we minimize the total amount necessary to keep social welfare constant. Using the shadow values corresponding to these optimization problems, we define a dynamic, multivariate version of the Atkinson index. Considering society’s dynamic nature, this approach assumes that agents are responsible for their economic position. Inequality arising from suboptimal behavior is ignored. The measure has several key benefits, including handling uncertainty and negative values.