Public Finance, 2nd Edition

4

THE SOCIAL WELFARE FUNCTION

IN POLICY ANALYSIS

SOCIAL WELFARE AND THE DISTRIBUTION OF INCOME: THE

ATKINSON FRAMEWORK

The Atkinson Assumptions

The Bias Toward Equality

Okun's Leaky Bucket

The Atkinson Social Welfare Function

Social Welfare Indexes of Inequality

Atkinson's Index of Inequality

Inequality Versus Social Welfare: Sen's Critique

The Atkinson Framework and Inequality in the United States

SOCIAL WELFARE AND CONSUMPTION: THE

JORGENSON ANALYSIS

The Estimating Share Equations

Social Welfare

Income Measures of Social Gain and Loss

Jorgenson's Social Expenditure Function

Social HCV and HEV

Two Applications for the U.S. Economy

SOCIAL WELFARE AND SOCIAL MOBILITY

Social Mobility and the Distribution of Income

Structural Mobility, Circulation Mobility, and Social Welfare

Social Mobility in the United States

One of the more diYcult economic questions every society must is the

fundamental question of distributive justice: What is the optimal distribution

of income? The question cannot be avoided. It must be answered even if the

economy performs as well as it possibly can and presents no other economic

problems. Moreover the answer must come through the political process, not

the market system.

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