Inequality and Envy

Abstract

Using a simple axiomatic structure we characterise two classes ofinequality indices - absolute and relative - that take into account "envy"in the income distribution. The concept of envy incorporated hereconcerns the distance of each person's income from his or herimmediately richer neighbour. This is shown to be similar to justiceconcepts based on income relativities.Inequality, envy, transfer principle.