Theoretical Economics
Journal of the Econometric Society
Edited by: Federico Echenique • ISSN (e): 1555-7561 • ISSN (print): 1933-6837
Edited by: Federico Echenique • ISSN (e): 1555-7561 • ISSN (print): 1933-6837
Theoretical Economics: May, 2018, Volume 13, Issue 2
https://doi.org/10.3982/TE2825
p. 467-484
Kristof Bosmans, Koen Decancq, Erwin Ooghe
We provide an axiomatic justification to aggregate money metrics. The key axiom requires the approval of richer-to-poorer transfers that preserve the overall efficiency of the distribution. This transfer principle, together with the basic axioms anonymity, continuity, monotonicity, and a version of welfarism, characterizes a standard social welfare function defined over money metric utilities.