We provide a characterization of the generalised satisfaction—in our terminology non-deprivation—quasi-ordering introduced by S.R. Chakravarty (Keio Econ Stud 34:17–32, (1997)) for making welfare comparisons. The non-deprivation quasi-ordering obeys a weaker version of the principle of transfers: welfare improves only for specific combinations of progressive transfers, which impose that the same amount be taken from richer individuals and allocated to one arbitrary poorer individual. We identify the extended Gini social welfare functions that are consistent with this principle and we show that the unanimity of value judgements among this class is identical to the ranking of distributions implied by the non-deprivation quasi-ordering. We extend the approach to the measurement of inequality by considering the corresponding relative and absolute ethical inequality indices.
Deprivation, welfare and inequality
14 January 2014