Authors:

  • Nathaniel Hendren

Excerpt

The Inequality Deflator: Interpersonal Comparisons without a Social Welfare Function. Nathaniel Hendren, May 2014, Paper. "This paper develops a tractable method for resolving the equity-efficiency tradeoff that modifies the Kaldor-Hicks compensation principle to account for the distortionary cost of redistribution. Weighting measures of individual surplus by the inequality deflator corresponds to searching for local Pareto improvements by making transfers through the income tax schedule..." Link Verified October 12, 2014