This article derives implications of Atkinson's measure of inequality, the
equally distributed equivalent income. If every individual gains proportionally
to his or her initial income, then the inequality index indicates a move to a
more equal distribution in society. Further, a new diagrammatic technique is
presented, allowing us to link welfare contours to Lorenz curves using the
concept of the equally distributed equivalent income. This technique allows us
to judge which distribution associated with crossing Lorenz curves is preferable to society in terms of total welfare.
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