Article
Comparisons of Utility Inequality and Income Inequality
Economics Letters
(2019)
Abstract
A simple theoretical model is developed and analyzed to investigate the possible relationships between
income inequality and utility inequality. Measuring utility inequality and income inequality with Gini
coefficients, it is argued that there need not be any relation whatsoever between the realized levels of
inequality in these two distinct outcomes. That is, a high level of income inequality could result when
there is either equally high or absolutely no utility inequality, and a low level of income inequality
could result when there is either no utility inequality or a relatively high degree of utility inequality.
Consequently, if what we are actually concerned with is inequality in utility or well-being, observations
on income inequality might be meaningless.
Keywords
- Income inequality,
- Utility Inequality
Disciplines
Publication Date
2019
Citation Information
Jesse A. Schwartz and Timothy Mathews. "Comparisons of Utility Inequality and Income Inequality" Economics Letters Vol. 178 (2019) p. 18 - 20 Available at: http://works.bepress.com/jesse_schwartz/15/