Arguments for a Better World: Essays in Honor of Amartya Sen: Volume I: Ethics, Welfare, and Measurement

617 Pages·2009·10.44 MB·English

by  Kaushik Basu

ARGUMENTS FOR A
BETTER WORLD
essays in honor of
amartya sen
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ARGUMENTS FOR A
BETTER WORLD
essays in honor of
amartya sen
.......................................................................................................................
Volume I: Ethics, Welfare,
and Measurement
Editedby
KAUSHIK BASU
and
RAVI KANBUR
1
3
GreatClarendonStreet,Oxfordox26dp
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Argumentsforabetterworld:essaysinhonorofAmartyaSen/
editedbyKaushikBasuRaviKanbur.
p. cm.
ISBN978–0–19–923911–5(hbk.:v.1)–ISBN978–0–19–923997–9(hbk.:v.2)
1. Welfareeconomics. 2. Institutionaleconomics. 3. Economics–Moraland
ethicalaspects. I. Basu,Kaushik. II. Kanbur,S.M.Ravi III. Sen,AmartyaKumar.
IV. Title:
EssaysinhonorofAmartyaSen.
HB846.094 2008
330–dc22 2008036360
TypesetbySPIPublisherServices,Pondicherry,India
PrintedinItalyby
RotolitoLombardaS.p.A.
ISBN 978–0–19–923911–5(Volume1)
ISBN 978–0–19–923997–9(Volume2)
ISBN 978–0–19–923999–3(Set)
1 3 5 7 9 10 8 6 4 2
ontents
C
....................................
ListofFigures viii
ListofTables x
ListofContributors xii
Introduction 1
PART I ETHICS, NORMATIVE ECONOMICS
AND WELFARE
1. WhyEconomicsNeedsEthicalTheory 7
JohnBroome
2. TheSenSystemofSocialEvaluation 15
S.R.Osmani
3. TheGoodLifeandtheGoodEconomy:TheHumanist
PerspectiveofAristotle,thePragmatistsandtheVitalists,and
theEconomicJusticeofJohnRawls 35
EdmundS.Phelps
4. TheAdaptationProblem,EvolutionandNormativeEconomics 50
MozaffarQizilbash
5. RightsandInterests 68
T.M.Scanlon
6. ElementsofaTheoryoftheRighttoDevelopment 80
ArjunSengupta
PART II AGENCY, AGGREGATION AND
SOCIAL CHOICE
7. RationalChoiceonGeneralDomains 103
WalterBossertandKotaroSuzumura
vi contents
8. SomeRemarksontheRankingofInfiniteUtilityStreams 136
BhaskarDutta
9. IndividualChoicesinaNon-ConsequentialistFramework:
AProceduralApproach 148
WulfGaertnerandYongshengXu
10. TheMethodofMajorityDecisionandRationalityConditions 167
SatishK.Jain
11. ConvexityandSeparabilityinRepresentingConsensus 193
IsaacLevi
12. Rights,IndividualPreferencesandCollectiveRationality 213
PrasantaK.Pattanaik
13. IrrelevantAlternatives 231
KevinRoberts
14. LimitedRightsandSocialChoiceRules 250
MauriceSalles
15. DominanceCriteriaforCritical-LevelGeneralizedUtilitarianism 262
AlainTrannoyandJohnA.Weymark
PART III POVERTY, CAPABILITIES AND
MEASUREMENT
16. TheMeasurementofCapabilities 283
PaulAnand,CristinaSantosandRonSmith
17. OnUltrapoverty 311
SudhirAnand,ChristopherHarrisandOliverLinton
18. MultidimensionalPovertyOrderings:TheoryandApplications 337
FrançoisBourguignonandSatyaR.Chakravarty
19. ExternalCapabilities 362
JamesE.FosterandChristopherHandy
20. OntheWelfaristRationaleforRelativePovertyLines 375
MartinRavallion
contents vii
21. JusticeasFairnessandtheCapabilityApproach 397
IngridRobeyns
22. UngroupingIncomeDistributions:SynthesizingSamples
forInequalityandPovertyAnalysis 414
AnthonyShorrocksandGuanghuaWan
23. APracticalProposalforSimplifyingtheMeasurementof
IncomePoverty 435
S.Subramanian
PART IV IDENTITY, COLLECTIVE ACTION
AND PUBLIC ECONOMICS
24. ConceptsandMeasuresofAgency 455
SabinaAlkire
25. Sen’sIdentities 475
KwameAnthonyAppiah
26. WelfareEconomicsandGivingforDevelopment 489
A.B.Atkinson
27. Justice,EquityandSharingtheCostofaPublicProject 501
RajatDeb,IndranilK.GhoshandTaeKunSeo
28. Isolation,AssuranceandRules:CanRationalFollySupplant
FoolishRationality? 523
PeterHammond
29. SimpleFormulaeforOptimalIncomeTaxationandthe
MeasurementofInequality 535
JosephE.Stiglitz
IndexofNames 567
IndexofSubjects 573
ist of igures
L F
......................................................
7.1 Rationalizabilityandpropertiesof f 132
12.1 Relationsbetweenconditions(3)through(7) 222
15.1 Generalizedconcentrationcurves 272
17.1 Lipton’sdefinitionofpovertyandultrapoverty 312
17.2 Densityfunctionofintake 316
17.3 Quantileregressionsofintakeonexpenditurepercentile 317
17.4 MovingSpearmancorrelationcoefficientsbetweenintakeand
expenditure 317
17.5 Derivativeofmedianintakewithrespecttoexpenditurepercentile 318
17.6 Densityfunctionoffoodshare 320
17.7 Quantileregressionsoffoodshareonexpenditurepercentile 320
17.8 MovingSpearmancorrelationcoefficientsbetweenfoodshare
andexpenditure 321
17.9 Derivativeofmedianfoodsharewithrespecttoexpenditure
percentile 322
17.10 Densityfunctionofexpenditure 324
18.1 Alternativedefinitionsofpovertyinthetwo-dimensionalcase 342
18.2 Correlation-increasingshift:(A ,A )→(A(cid:2),A(cid:2)) 345
1 2 1 2
18.3 Dominancecriterion:povertyheadcountmustnotbehighereither
inTDPS(II)underNDPorintheunionoftheSDPS(I+II+III)
underNIP 351
18.4 Acorrelation-increasingshiftdoesnotreducethepoverty
headcountintheTPDSregions(II)butdoesnotincreaseitinthe
unionoftheSDPSregions 352
18.5 Overalldominantsingleshift 354
18.6 NDP-typedominantdoubleshift 355
18.7 NIP-typedominantdoubleshift 355
18.8 Non-dominantdoubleshift 356
22.1 DeviationfromtrueLorenzcurve 430
listoffigures ix
22.2 Deviationofpartialsquaredcoefficientofvariation 431
27.1 Expectedutilitiesandprice 507
27.2 Theexpected-utilitypossibilitiescurve 508
27.3 Inequalityaversionandsocialwelfaremaximization 509
27.4 Degreesofinequalityaversion 511
27.5 Utility-egalitariansolutions 512
27.6 Theunconstrainedutility-egalitariansolution 513
27.7 ThePareto-constrainedutility-egalitariansolution 514
27.8 Theexpected-resourcepossibilitiescurve 517
27.9 Theresource-egalitariansolution 518
29.1 Rankingopportunitysets 538
29.2 Measuringinequalitywithdifferentwageswhenallindividuals
havethesameendowmentofleisure 539
29.3 Increasingvariabilityinwagesmayleadtoanincreaseinwelfare:
thelossinwelfarefromareductioninthewageismuchsmaller
thantheincreaseinwelfarefromasymmetricincreaseinthewage 548