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Who's afraid of aggregating money metrics?

2018; Econometric Society; Volume: 13; Issue: 2 Linguagem: Inglês

10.3982/te2825

1933-6837

Kristof Bosmans, Koen Decancq, Erwin Ooghe,

Economic Theory and Policy

Theoretical EconomicsVolume 13, Issue 2 p. 467-484 Original ArticlesOpen Access Who's afraid of aggregating money metrics? Kristof Bosmans, Kristof Bosmans k.bosmans@maastrichtuniversity.nl Department of Economics, Maastricht UniversitySearch for more papers by this authorKoen Decancq, Koen Decancq koen.decancq@uantwerpen.be Herman Deleeck Centre for Social Policy, University of AntwerpSearch for more papers by this authorErwin Ooghe, Erwin Ooghe erwin.ooghe@kuleuven.be Department of Economics, KU Leuven We thank Antoine Bommier, André Decoster, Marc Fleurbaey, Nicolas Gravel, François Maniquet, Paolo Piacquadio, Erik Schokkaert, Alain Trannoy, and audiences in Bari (Fifth Meeting of ECINEQ), Gent (Ghent University), Glasgow (University of Glasgow), Leuven (KU Leuven), Louvain-la-Neuve (Université Catholique de Louvain), Lund (Thirteenth Meeting of the Society for Social Choice and Welfare), Luxembourg (Sixth Meeting of ECINEQ), Marseille (Aix-Marseille University), and Zürich (ETH Zürich) for useful comments. The authors are responsible for remaining shortcomings. Search for more papers by this author Kristof Bosmans, Kristof Bosmans k.bosmans@maastrichtuniversity.nl Department of Economics, Maastricht UniversitySearch for more papers by this authorKoen Decancq, Koen Decancq koen.decancq@uantwerpen.be Herman Deleeck Centre for Social Policy, University of AntwerpSearch for more papers by this authorErwin Ooghe, Erwin Ooghe erwin.ooghe@kuleuven.be Department of Economics, KU Leuven We thank Antoine Bommier, André Decoster, Marc Fleurbaey, Nicolas Gravel, François Maniquet, Paolo Piacquadio, Erik Schokkaert, Alain Trannoy, and audiences in Bari (Fifth Meeting of ECINEQ), Gent (Ghent University), Glasgow (University of Glasgow), Leuven (KU Leuven), Louvain-la-Neuve (Université Catholique de Louvain), Lund (Thirteenth Meeting of the Society for Social Choice and Welfare), Luxembourg (Sixth Meeting of ECINEQ), Marseille (Aix-Marseille University), and Zürich (ETH Zürich) for useful comments. The authors are responsible for remaining shortcomings. Search for more papers by this author First published: 29 May 2018 https://doi.org/10.3982/TE2825Citations: 6 AboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL Share a linkShare onFacebookTwitterLinkedInRedditWechat 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. References 1 Allais, Maurice (1943), À la recherche d'une discipline économique, Vol. I. Ateliers Industria, Paris. 1 Blackorby, Charles and David Donaldson (1988), "Money metric utility: A harmless normalization?" Journal of Economic Theory, 46, 120– 129. 10.1016/0022-0531(88)90152-4 1 Boiteux, Marcel (1951), "Le 'revenu distribuable' et les pertes économiques." Econometrica, 19, 112– 133. 10.2307/1905729 1 Bosmans, Kristof, Koen Decancq, and Erwin Ooghe (2015), "What do normative indices of multidimensional inequality really measure?" Journal of Public Economics, 130, 94– 104. 1 Cato, Susumu (2016), " A well-being measurement based on equivalent sets." Unpublished paper, University of Tokyo. 1 Chambers, Christopher P. and Takashi Hayashi (2012), "Money-metric utilitarianism." 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