Who’s afraid of aggregating money metrics?

Kristof Bosmans, Koen Decancq, Erwin Ooghe

Research output: Contribution to journalArticleAcademicpeer-review

Abstract

We provide an axiomatic justification to aggregate money metrics. The key axiom requires the approval of richer-to-poorer transfers that preserve the overall efficiency of the distribution. This transfer principle-together with the basic axioms of anonymity, continuity, monotonicity, and a version of welfarism-characterizes a standard social welfare function defined over money metric utilities.

Original languageEnglish
Pages (from-to)467-484
Number of pages18
JournalTheoretical Economics
Volume13
Issue number2
DOIs
Publication statusPublished - May 2018

Keywords

  • Money metric utility
  • transfer principle
  • efficiency
  • WELFARE ANALYSIS
  • SOCIAL-WELFARE
  • DEMAND THEORY
  • TAX REFORMS
  • UTILITARIANISM
  • EGALITARIAN
  • UTILITY

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