8224 - INCOME DISTRIBUTION
MM-LS - OSI-LS - AFC-LS - CLAPI-LS - CLEFIN-LS - CLELI-LS - CLEACC-LS - DES-LS - CLEMIT-LS - CLG-LS - M-LS
Department of Decision Sciences
Course taught in English
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
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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
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Generalized Lorenz Curve
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Decomposition of inequality
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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
Detailed Description of Assessment Methods
The exam consists of an essay on a topic chosen by the student that is discussed with the professors.
Textbooks
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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.
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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.
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S.R. CHAKRAVARTY, P. MULIERE, Welfare Indicators: A review and new perspectives. 1. Measurement of Deprivation, Polarization and Mobility. Technical Report, 2005.
Additional references will be given during the lectures.