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List of Figures1.1 Two Types of <strong>Inequality</strong> . . . . . . . . . . . . . . . . . . . . . . . 81.2 An <strong>Inequality</strong> Ranking . . . . . . . . . . . . . . . . . . . . . . . . 81.3 Alternative policies for Fantasia . . . . . . . . . . . . . . . . . . . 152.1 The Parade of Dwarfs. UK Income Before Tax, 1984/5. Source:Economic Trends, November 1987 . . . . . . . . . . . . . . . . . . . 192.2 Frequency Distribution of Income Source: as for Figure 2.1 . . . . 202.3 Cumulative Frequency Distribution. Source: as for Figure 2.1 . . . 212.4 Lorenz Curve of Income. Source: as for Figure 2.1 . . . . . . . . . 222.5 Frequency Distribution of Income (Logarithmic Scale).Source: asfor Figure 2.1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 232.6 The Parade with Partial Equalisation . . . . . . . . . . . . . . . 252.7 The High-Low Approach . . . . . . . . . . . . . . . . . . . . . . . 282.8 The Parade and the Quantile Ranking . . . . . . . . . . . . . . . 312.9 Quantile ratios of earnings of adult men, UK 1968-2007. Source:Annual Survey of Hours and Earnings . . . . . . . . . . . . . . . . . 322.10 Ranking by Shares. UK 1984/5 Incomes before and after tax.Source: as for Figure 2.1 . . . . . . . . . . . . . . . . . . . . . . . . 332.11 Lorenz Curves Crossing . . . . . . . . . . . . . . . . . . . . . . . 342.12 Change at the bottom of the income distribution . . . . . . . . . 352.13 Change at the top of the income distribution . . . . . . . . . . . 353.1 Social utility and relative income . . . . . . . . . . . . . . . . . . 443.2 The relationship between welfare weight and income. . . . . . . . 453.3 The Generalised Lorenz Curve Comparison: UK income beforetax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 473.4 Distribution of Income and Distribution of Social Utility . . . . . 493.5 The Atkinson and Dalton Indices . . . . . . . . . . . . . . . . . . 503.6 The Theil Curve . . . . . . . . . . . . . . . . . . . . . . . . . . . 543.7 Theil’s Entropy Index . . . . . . . . . . . . . . . . . . . . . . . . 563.8 A variety of distance concepts . . . . . . . . . . . . . . . . . . . . 583.9 Lorenz Curves for Equivalised Disposable Income per Person.Switzerland and USA. . . . . . . . . . . . . . . . . . . . . . . . . 69vii
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