Intermediate inequality and welfare

We introduce a new centrist or intermediate inequality concept, between the usual relative and absolute notions, which is shown to be a variant of the alpha-ray invariant inequality measures in Pfingsten and Seidl (1997). We say that distributions x and y have the same (x; pi)-inequality if the tota l income difference between them is allocated among the individuals as foll ows: 100 pi% preserving income shares in x, and 100(1 - pi)% in equal absol ute amounts. This notion can be made as operational as current standard met hods in Shorrocks (1983).