Popular support for egalitarian social welfare

  1. Salas del Mármol, Rafael
  2. Rodríguez Hernández, Juan Gabriel
Revista:
Papeles de trabajo del Instituto de Estudios Fiscales. Serie economía

ISSN: 1578-0252

Año de publicación: 2010

Número: 3

Páginas: 3-37

Tipo: Artículo

Otras publicaciones en: Papeles de trabajo del Instituto de Estudios Fiscales. Serie economía

Resumen

This paper provides a reconciliation of the welfarist literature and the political economy literature represented by the majority voting process. We show that a particular additive and concave utilitarian social evaluation function is consistent with the outcomes of majority voting if we restrict the class of income distributions to those that are symmetric under strictly increasing and concave transformations. A particular example is the lognormal distribution. We confirm that the required symmetry condition is generally accepted using an illustration for a panel of 116 countries. Moreover, the proposed methodology provides the inequality aversion parameter useful in practice and shows that median income is a good proxy for social welfare.