A social welfare ordering suited for ordered response data is introduced. Paretian probability transfers (PPTs) and equalizing probability transfers (EPTs) respectively capture society’s preference for efficiency and equity. The resulting relation is shown to generate a complete lattice over the set of cumulative distributions. A Gamma curve (akin to the generalized Lorenz curve—enabling the researcher to explore welfare orderings) and a class of social welfare functions are also introduced. The methodology is illustrated using Egyptian data on nutritional status.
|Name||Discussion Paper in Economics|
|Publisher||University of Aberdeen|
We are grateful to Francesco Andreoli, Jean-Yves Duclos, Nadia Ghanmi, Nicolas Gravel, Christophe Muller, Ernesto Savaglio, Joe Swierzbinski and Claudio Zoli for helpful comments. We are also grateful to participants of the 12th Louis-André Gérard-Varet Journées in Public Economics, at the University of Aix-Marseille for discussions.
- Social welfare measurement
- ordered response health data
- Paretian probability transfers
- equalizing probability transfers
- complete lattices
- Gamma curves