Intermediate inequality: Concepts, indices, and welfare implications (Q1813695)

The intermediate inequality concept introduced by the authors appears to be very interesting both axiomatically and ethically. Since a choice among absolute and relative inequality concepts cannot be made without any value judgement, the authors propose a new concept (intermediate inequality), as a combination of both situations, being their respectived weight indicated by the \(\mu\)-parameter values. This measure --- axiomatically derived --- is also examined from the ethical point of view, and a generalization of the results of Blackorby-Donaldson (including both absolute and relative inequality as particular cases) is found.