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Comments on: Quote of the Day: Kolm on inequality http://www.tvhe.co.nz/2014/04/28/quote-of-the-day-kolm-on-inequality/ The Visible Hand in Economics Mon, 19 May 2014 23:11:00 +0000 hourly 1 https://wordpress.org/?v=6.9.4 By: Beware the seductive simplicity of the Spirit Level | The Dismal Science http://www.tvhe.co.nz/2014/04/28/quote-of-the-day-kolm-on-inequality/#comment-43197 Mon, 19 May 2014 23:11:00 +0000 http://www.tvhe.co.nz/?p=11242#comment-43197 […] Many economists view of inequality tends to be based on a more operational view about policy.  In the mid-1990s, the economist Serge-Christophe Kolm said “Few concepts are as meaninglessly used as that of inequality”.  However, he didn’t say this because inequality didn’t matter – to give it context in 1976 he said: […]

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By: Beware the seductive simplicity of the Spirit Level | The Dismal Science http://www.tvhe.co.nz/2014/04/28/quote-of-the-day-kolm-on-inequality/#comment-43196 Mon, 19 May 2014 23:10:57 +0000 http://www.tvhe.co.nz/?p=11242#comment-43196 […] Many economists view of inequality tends to be based on a more operational view about policy.  In the mid-1990s, the economist Serge-Christophe Kolm said “Few concepts are as meaninglessly used as that of inequality”.  However, he didn’t say this because inequality didn’t matter – to give it context in 1976 he said: […]

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By: Beware the seductive simplicity of the Spirit Level http://www.tvhe.co.nz/2014/04/28/quote-of-the-day-kolm-on-inequality/#comment-43187 Mon, 19 May 2014 01:05:04 +0000 http://www.tvhe.co.nz/?p=11242#comment-43187 […] Many economists view of inequality tends to be based on a more operational view about policy. In the mid-1990s, the economist Serge-Christophe Kolm said “Few concepts are as meaninglessly used as that of inequality”. However, he didn’t say this because inequality didn’t matter – to give it context in 1976 he said: […]

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By: Matt Nolan http://www.tvhe.co.nz/2014/04/28/quote-of-the-day-kolm-on-inequality/#comment-43027 Mon, 28 Apr 2014 03:00:00 +0000 http://www.tvhe.co.nz/?p=11242#comment-43027 In reply to Kimble.

Indeed, the problem is that the two sound so similar – I blame the English language 😉

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By: Kimble http://www.tvhe.co.nz/2014/04/28/quote-of-the-day-kolm-on-inequality/#comment-43026 Mon, 28 Apr 2014 02:32:00 +0000 http://www.tvhe.co.nz/?p=11242#comment-43026 In reply to Matt Nolan.

That’s the word we have been missing! Injustice!

Justice BEFORE equality.

The inequality fetishists treat all inequality as an injustice, and then whine whenever anyone says the two aren’t equivalent.

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By: Quote of the Day: Kolm on inequality http://www.tvhe.co.nz/2014/04/28/quote-of-the-day-kolm-on-inequality/#comment-43025 Mon, 28 Apr 2014 01:01:39 +0000 http://www.tvhe.co.nz/?p=11242#comment-43025 […] Matt Nolan One of the forefathers of modern income inequality analysis, Serge-Christophe Kolm, started one of […]

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By: Matt Nolan http://www.tvhe.co.nz/2014/04/28/quote-of-the-day-kolm-on-inequality/#comment-43024 Sun, 27 Apr 2014 23:14:00 +0000 http://www.tvhe.co.nz/?p=11242#comment-43024 In reply to VMC.

We sort of need to know what “inequality” means before we can say much. Hopefully within the next month I will have a long, long, long document up that will talk about inequality measures – and the things they represent. I’m guessing it might hit 50 pages – so I’ll try to write a summary in a blog post.

People care, justifiably, about injustice. We need a correspondence from this to other measures before we can discuss an “equity”-“efficiency” trade-off. I’ve always found it sort of abhorrent how the e-e trade-off has just been boiled down to “GDP”vs”GDP dispersion”!

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By: VMC http://www.tvhe.co.nz/2014/04/28/quote-of-the-day-kolm-on-inequality/#comment-43023 Sun, 27 Apr 2014 23:02:00 +0000 http://www.tvhe.co.nz/?p=11242#comment-43023 In reply to Matt Nolan.

Generally I find that data hunts in packs, so I would be interested in examples of inequality measures that show opposite results. Having said that, for those concerned about inequality I would think it sensible to have several (techinical) measures of inequality so that any policy changes they make can be evaluated broadly

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By: Matt Nolan http://www.tvhe.co.nz/2014/04/28/quote-of-the-day-kolm-on-inequality/#comment-43022 Sun, 27 Apr 2014 22:47:00 +0000 http://www.tvhe.co.nz/?p=11242#comment-43022 In reply to VMC.

Inequality is way, way, too vague. Everyone agree that we should, as a society, co-operate to reduce inequality – where everyone disagrees is what this inequality actually constitutes.

It is empty to say “lets lower inequality” – as Kolm notes, even if we restrict ourselves to only income inequality, and ignore many of the complications that come from individual differences, we can construct reasonable sounding indices of inequality that show opposite results.

You’ll note that this critique is not only of “inequality”, but of “productivity” and to a lesser extent “GDP”. Output based fetishism is as much a way to obfuscate costs/benefits as it is a form of communication – and this is something we should be aware of!

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By: VMC http://www.tvhe.co.nz/2014/04/28/quote-of-the-day-kolm-on-inequality/#comment-43021 Sun, 27 Apr 2014 21:53:00 +0000 http://www.tvhe.co.nz/?p=11242#comment-43021 In reply to Matt Nolan.

Relevant to who? Most issues of concern in the world can have several levels of interpretation. Something like “crime rates” can be understood at a technical level using precise and closely defined technical descriptions – but only understood by a few people. At a level that communicates with a broad and diverse audience you need language that stands the ‘public square test’. And I would think that inequality was one of those terms that has pretty effective communicative power, and is far from meaningless today bearing in mind that the usage of the term ‘inequality’ has risen hugely since the 1960s

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