On the Definition of Economic Efficiency

This paper analyzes the definition of economic efficiency. The standard definition used in economic literature is the Pareto Optimum which is based in the space of individual utilities. This paper proposes new definitions based on alternative spaces. The paper also introduces a dominance criterion for efficiency over a set of social evaluation spaces.Efficiency, Social justice, Dominance

Decomposition of s-Concentration Curves

For any given order of stochastic dominance, standard concentration curves are decomposed into contribution curves corresponding to within-group inequalities, between-group inequalities, and transvariational inequalities. We prove, for all orders, that contribution curve dominance implies systematically welfare-improving tax reforms and conversely. Accordingly, we point out some undesirable fiscal reforms since a welfare expansion may be costly in terms of particular inequalities.Concentration curves ; Contribution curves ; Stochastic dominance ; Tax reforms

Assessing the Redistributive Impact of Higher Education Tuition Fees Reforms: The Case of Québec

In this article, we analyze the redistributive impact of a recent reform of tuition fees in Quebec. We adapt Duclos, Makdissi and Wodon's (2005) methodology to a Generalized Lorenz framework. Many policy analysts argued that maintaining low higher education tuition fees is regressive. We take a look at the empirical validity of this argument using data from Statistics Canada's Survey of Labor and Income Dynamics. We show the importance of using data to validate this argument. The results obtained allow for the conclusion that this redistributive argument is empirically not verified for the Province of Québec.Higher Education, Tuition fees, Inequality

Can risk averse competitive input providers serve farmers efficiently in developing countries ?

Under price ceilings and quality floors for agricultural inputs in cash crop sectors in developing countries where credit markets are weak, imperfect information on the ability of farmers to pay for their inputs at the end of the cropping season may lead the decentralized production of those inputs by risk averse private input providers to be inefficient. A coordinating agency and/or subsidies for new farmers could help to produce and distribute more agricultural inputs, thereby increasing the profits for input providers while also enabling more farmers to produce the crops that are key to their livelihood.Rural Poverty Reduction,Economic Theory&Research,Crops&Crop Management Systems,Access to Finance,Rural Development Knowledge&Information Systems

Decomposition of s - Concentration Curves

For any given order of stochastic dominance, standard concentration curves are decomposed into contribution curves corresponding to within-group inequalities, between-group inequalities, and transvariational inequalities. We prove, for all orders, that contribution curve dominance implies systematically welfare-improving tax reforms and conversely. Accordingly, we point out some undesirable fiscal reforms since a welfare expansion may be costly in terms of particular inequalities.Concentration curves, Contribution curves, Stochastic dominance, Tax reforms

Between-Group Transfers and Poverty-Reducing Tax Reforms

In this paper, we propose the conception of within-group CD-curve, to apprehend the impact of indirect tax reforms on truncated distributions of consumption expenditures. This confers decision makers the ability to perform within-group transfers as well as between-group transfers to reduce poverty in particular groups or to obtain an overall poverty alleviation. Between-group transfers are implemented in order to introduce a fairness element into the indirect tax framework, allowing to test for the robustness of reducing-tax reforms, for any order of stochastic dominance.CD-curve ; Redistribution ; Stochastic dominance ; Tax reforms

Rank-Dependent Measures of Bi-Polarization and Marginal Tax Reforms

In this paper, we investigate a dual class of bi-polarization indices, namely rank-dependent bi-polarization indices. We show that these indices may be characterized with the generalized positional transfer sensitivity property. We find necessary and sufficient conditions in order to identify bi-polarization-reducing marginal tax reforms. Precisely, we propose inverse positional dominance criteria based on the comparison of bi-polarization concentration curves. An illustration is presented using the Jordanian Household Expenditure and Income Survey 2002/2003.

Risk-adjusted measures of wage inequality and safety nets

Income variablity is likely to increase wage inequality if poorer households are more vulnerable to shocks. Using a simple method to estimate risk-adjusted measures of wage inequality and data from Mexico, this note shows that safety nets could offset a good part of the impact of risk aversion on wage inequality.

Robust Comparisons of Natural Resources Depletion Indices

This note applies tools from the stochastic dominance literature on poverty to environmental data in order to test in a robust way whether over-consumption and thereby depletion of natural resources is increasing over time. The method is illustrated with country data on per capita CO2 emissions.

Can Risk Averse Competitive Input Providers Serve Farmers Efficiently in Developing Countries

Under price ceilings and quality floors for agricultural inputs in cash crop sectors in developing countries where credit markets are weak, imperfect information on the ability of farmers to pay for their inputs at the end of the cropping season may lead the decentralized production of those inputs by risk averse private input providers to be inefficient. A coordinating agency and/or subsidies for new farmers could help to produce and distribute more agricultural inputs, thereby increasing the profits for input providers while also enabling more farmers to produce the crops that are key to their livelihood.Farm inputs, Risk Aversion, Price Control, Public Good