An axiomatic characterization of the Theil inequality ordering
Vega, Casilda Lasso de la
An axiomatic characterization of the Theil inequality ordering created by Casilda Lasso de la Vega, Ana Urrutia and Oscar Volij - Economic theory Volume 54, number 3 .
We axiomatically characterize the Theil ordering of income inequality. In addition to the uncontroversial axioms of anonymity, homogeneity, replication invariance, strong directedness, and a standard continuity property, we appeal to both an independence and a decomposability axioms. These two axioms are ordinal implications of Theil decomposability, the central axiom in previous characterizations of the Theil index. To the best of our knowledge, the present is the first fully ordinal characterization of this index.
09382259
Income inequality--Decomposability--Theil index
Axiomatic characterization
HB139.T52 ECO
An axiomatic characterization of the Theil inequality ordering created by Casilda Lasso de la Vega, Ana Urrutia and Oscar Volij - Economic theory Volume 54, number 3 .
We axiomatically characterize the Theil ordering of income inequality. In addition to the uncontroversial axioms of anonymity, homogeneity, replication invariance, strong directedness, and a standard continuity property, we appeal to both an independence and a decomposability axioms. These two axioms are ordinal implications of Theil decomposability, the central axiom in previous characterizations of the Theil index. To the best of our knowledge, the present is the first fully ordinal characterization of this index.
09382259
Income inequality--Decomposability--Theil index
Axiomatic characterization
HB139.T52 ECO