Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/161836
Authors: 
Marjit, Sugata
Sarkar, Sandip
Year of Publication: 
2017
Series/Report no.: 
CESifo Working Paper 6397
Abstract: 
The well known Pareto criterion used in the context of efficiency and welfare has to do with absolute changes whereas in every domain of economic behaviour inequality or relative changes has become a major concern. We propose an inequality-preserving or distribution neutral Pareto criterion-the strong Pareto superior or SPS allocation which preserves the initial distribution and makes everyone better off. Our main result is that whenever there is a gain in the aggregate value of the relevant attribute, there exists a unique counterfactual allocation which is SPS.
Subjects: 
Pareto superiority
strong Pareto superiority
inequality
JEL: 
A10
Document Type: 
Working Paper

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