Social welfare orderings

A life-cycle perspective

Ramses Hani Abul Naga

Research output: Contribution to journalArticle

1 Citation (Scopus)

Abstract

Life-cycle theories emphasize the fact that consumption is allocated intertemporally, on the basis of a long-term concept of resources that differs from household income. Because life-cycle income is unobserved, the distribution of this variable cannot be recovered. It is shown that, within a suitably defined class, a predictor of life-cycle income based on household income and expenditure entails a distribution dominated in a social welfare sense by the distribution of life-cycle incomes. A predictor constructed from socio-demographic variables induces a distribution that welfare-dominates the distribution of life-cycle incomes.

Original languageEnglish
Pages (from-to)497-514
Number of pages18
JournalEconomica
Volume72
Issue number287
Early online date19 Jul 2005
DOIs
Publication statusPublished - Aug 2005

Keywords

  • precautionary savings
  • income distributions
  • stochastic-dominance
  • consumption
  • inequality
  • household
  • poor
  • poverty
  • US

Cite this

Social welfare orderings : A life-cycle perspective. / Abul Naga, Ramses Hani.

In: Economica, Vol. 72, No. 287, 08.2005, p. 497-514.

Research output: Contribution to journalArticle

Abul Naga, Ramses Hani. / Social welfare orderings : A life-cycle perspective. In: Economica. 2005 ; Vol. 72, No. 287. pp. 497-514.
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