Social welfare and the Gini coefficient revisited (Q1059539)

The question of conflict between the rankings of income distributions with the same mean by the Gini coefficient and by individualistic social welfare functions is re-examined. The negative result of \textit{D. Newbery} [J. Econ. Theory 2, 264-266 (1970)] is extended. However, positive results are obtainable which reverse Newbery's conclusion by admitting into the individual's utility index a measure of his position in the income distribution, or of his deprivation with respect to others' incomes.