References of "Journal of Mathematical Economics"
     in
Bookmark and Share    
Full Text
Peer Reviewed
See detailDistance-based social index numbers: a unifying approach
Bossert, Walter; d'Ambrosio, Conchita UL; Weber, Shlomo

in Journal of Mathematical Economics (in press)

We present a unified approach to the design of social index numbers. Our starting point is a model that employs an exogenously given partition of the population into subgroups. Three classes of group ... [more ▼]

We present a unified approach to the design of social index numbers. Our starting point is a model that employs an exogenously given partition of the population into subgroups. Three classes of group-dependent measures of deprivation are characterized. The three groups are nested and, beginning with the largest of these, we narrow them down by successively adding two additional axioms. This leads to a parameterized class the members of which are based on the differences between the income (or wealth) levels of an individual and those who are better off. We then proceed to show that our measures are sufficiently general to accommodate a plethora of indices, including measures of inequality and polarization as well as distance-based measures of phenomena such as diversity and fractionalization. [less ▲]

Detailed reference viewed: 59 (0 UL)
Full Text
Peer Reviewed
See detailThreshold preferences and the environment
Schumacher, Ingmar; Zou, Benteng UL

in Journal of Mathematical Economics (2015), 60

In this article we study the implication of thresholds in preferences. To model this we extend the basic model of John and Pecchenino (1994) by allowing the current level of environmental quality to have ... [more ▼]

In this article we study the implication of thresholds in preferences. To model this we extend the basic model of John and Pecchenino (1994) by allowing the current level of environmental quality to have a discrete impact on how an agent trades off future consumption and environmental quality. Thus, we endogenize the semi-elasticity of utility based on a step function. We find that for low (high) thresholds, environmental quality converges to a low (high) steady state. For intermediate levels it converges to a stable p-cycle, with environmental quality being asymptotically bounded below and above by the low and high steady state. As policy implications we study shifts in the threshold. Costless shifts of the threshold are always worthwhile. If it is costly to change the threshold, then it is worthwhile to change the threshold if the threshold originally was sufficiently low. Lump-sum taxes lead to a development trap and a proportional income tax should be preferred. [less ▲]

Detailed reference viewed: 109 (5 UL)