Course 2008-2009 a.y.

8224 - INCOME DISTRIBUTION

Department of Decision Sciences

Course taught in English


Go to class group/s: 31

Classes: 31 (I sem.)
Instructors:
Class 31: PIETRO MULIERE

Course Objectives

This course focuses on the measurement and interpretation of individuals' well-being. It also analyzes the distribution of income and the study of phenomena such as poverty, inequality, and polarization.
The main questions addressed are the following: what does it mean to be well-off (or  deprived)? How can societies make judgements and decisions about welfare? How can one compare well-being among people, and over time? What is meant by inequality, polarization and income mobility? Why do poverty and inequality matter?
This course tackles both the theoretical as well as the empirical issues surrounding these concepts.


Course Content Summary
  • Inequality
    Basic principles; examples of inequality indices; orderings of distributions by inequality indices
  • Inequality and welfare: relative case
    Interpretations of relative case; absolute case; interpretations of absolute case; indices related to social welfare functions
  • Dasgupta-Sen-Starrett theorems
  • Generalized Lorenz Curve
  • Decomposition of inequality
  • Poverty
    Problem; basic principles: Sen and extensions of Sen; Alternative indices (censored income distributions); poverty orderings: Foster-Schorroks
  • Polarization
    Problem; basic principles; indices; orderings of distributions by polarization indices

Textbooks
  • S.R. CHAKRAVARTY, P. MULIERE, Welfare Indicators: A review and new perspectives. 1. Measurement of inequality, Metron, International Journal of Statistics, vol. LXI, n.3, pp. 457-497, 2003.
  • S.R. CHAKRAVARTY, P. MULIERE, Welfare Indicators: A review and new perspectives. 1.  Measurement of  poverty, Metron, International Journal of Statistics, vol. LXII, n.2, pp. 247-281, 2004.
  • S.R. CHAKRAVARTY, P. MULIERE, Welfare Indicators: A review and new perspectives. 1. Measurement of Deprivation, Polarization and Mobility. Technical  Report, 2005.

 Additional references are given during the lectures.


Detailed Description of Assessment Methods

The exam consists of an essay on a topic chosen by the student that is discussed with the professors.

 

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