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This paper provides a review of part of the literature on inequality and social welfare, with a special focus on the Gini index. The paper first presents the extended Gini index used for measuring inequality, as well as the source decomposition of the Gini used to analyze how changesin income and consumption sources affect overall inequality. The paper then provides a wide range ofpolicy applications of the source decomposition of the extended Gini index, including techniques for analyzing the impact on inequality of the targeting of programs as opposed to the rules for the allocation ofbenefits among program participants. This unpublished version of the paper in Spanish was translated from an English version published in the World Bank-s Poverty Reduction Strategy Sourcebook.

Item Type: MPRA Paper -

Original Title: Desigualdad y bienestar social-

English Title: Inequality and Social Welfare-

Language: Spanish-

Keywords: Inequality; social welfare-

Subjects: D - Microeconomics > D6 - Welfare Economics > D63 - Equity, Justice, Inequality, and Other Normative Criteria and MeasurementI - Health, Education, and Welfare > I3 - Welfare, Well-Being, and Poverty > I31 - General Welfare, Well-Being-

Autor: Wodon, Quentin


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