Program > Papers by author > Ranaldi Marco

Tuesday 13
C5 - Equity, justice and other normative criteria and measurement II
Chair: Geir Bjarne Asheim
› 9:25 - 9:50 (25min)
› Auditorium - 2nd floor
On the Measurement of Functional Income Distribution
Marco Ranaldi  1@  
1 : Ecole d'Économie de Paris - Paris School of Economics  (EEP-PSE)  -  Website
Ecole d'Économie de Paris, Université Paris I - Panthéon-Sorbonne
48 boulevard Jourdan 75014 Paris -  France

The present study seeks to investigate the issue of income composition from a theoretical perspective. In order to make this possible, I introduce the concept of sources polarization among individuals (or groups), together with a novel methodological framework whereby further examining this subject. Such a framework hinges on two major elements. The first element is a new way to decompose individual and aggregate income. The second is a specic measure, called Functional Income Distribution Index, If, directly derived from the framework, which summarizes with one number the polarization of income sources across the population. I illustrate several mathematical properties of the index, among which a singular connection with the Gini coefficient. In addition to that, I carry out a first empirical application of the methodology, which focuses on the case of the US during the 20th century. I find strong evidence that income sources are no longer polarized among rich and poor as in the past.

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