Scandinavian Working Papers in Economics
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Department of Business and Economics, University of Southern Denmark Discussion Papers of Business and Economics
Department of Business and Economics, University of Southern Denmark

No 12/2015:
Decomposing bivariate dominance for social welfare comparisons

Tina Gottschalk (), Troels Martin Range (), Peter Sudhölter () and Lars Peter Østerdal ()

Abstract: The lower orthant dominance relation is frequently used for multidimensional social welfare comparisons. Recently it has been shown that bivariate dominance can be characterized in terms of elementary mass transfer operations. We provide an algorithm which explicitly decomposes the mass transfers into welfare differences and inequality differences.

Keywords: Social welfare; lower orthant dominance; first order dominance; algorithm; (follow links to similar papers)

JEL-Codes: C63; D63; I31; (follow links to similar papers)

14 pages, June 30, 2015

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