Robust International Comparisons of Distributions of Disposable Income and Regional Public Goods

In: Economica, Band 76, Heft 303, S. 432-461

Abstract

The paper provides robust normative comparisons of 12 OECD countries based on their distributions of disposable income and access to two regional public goods: infant mortality and pupil–teacher ratios at public schools. Comparisons are performed using two and three‐dimensional dominance criteria that coincide with the unanimity of utilitarian judgments taken over specific classes of utility functions. The criteria succeed in ranking conclusively about 30% of all possible comparisons in the two‐dimensional case, compared with 67% for one‐dimensional income‐based comparisons and 6% for three‐dimensional ones. Introducing local public goods seems to worsen the relative standing of Anglo‐Saxon countries.