The article by Hugh Dalton discusses the measurement of income inequality, a topic that has received less attention from English economists compared to other countries. Dalton argues that the primary concern is not the distribution of income itself but its impact on economic welfare. He proposes defining inequality as the ratio of total economic welfare attainable under an equal distribution to the total economic welfare under the given distribution, with this ratio being unity for an equal distribution and greater than unity for unequal distributions. Dalton explores various measures of inequality, including the arithmetic mean, geometric mean, harmonic mean, mean deviation, standard deviation, and Gini's mean difference. He evaluates these measures using three principles: the principle of transfers, the principle of proportionate additions to incomes, and the principle of equal additions to incomes. The principle of transfers suggests that transfers from richer to poorer individuals reduce inequality. The principle of proportionate additions to incomes implies that proportionate increases in all incomes decrease inequality, while proportionate decreases increase it. The principle of equal additions to incomes further suggests that equal increases in all incomes reduce inequality more effectively than proportionate increases. Dalton concludes that the relative standard deviation and the relative mean difference are the most suitable measures for imperfect statistical data, while the relative mean difference is slightly preferable due to its graphical representation through the Lorenz curve. He emphasizes the importance of improving statistical data, especially for smaller incomes, to better measure and understand income inequality.The article by Hugh Dalton discusses the measurement of income inequality, a topic that has received less attention from English economists compared to other countries. Dalton argues that the primary concern is not the distribution of income itself but its impact on economic welfare. He proposes defining inequality as the ratio of total economic welfare attainable under an equal distribution to the total economic welfare under the given distribution, with this ratio being unity for an equal distribution and greater than unity for unequal distributions. Dalton explores various measures of inequality, including the arithmetic mean, geometric mean, harmonic mean, mean deviation, standard deviation, and Gini's mean difference. He evaluates these measures using three principles: the principle of transfers, the principle of proportionate additions to incomes, and the principle of equal additions to incomes. The principle of transfers suggests that transfers from richer to poorer individuals reduce inequality. The principle of proportionate additions to incomes implies that proportionate increases in all incomes decrease inequality, while proportionate decreases increase it. The principle of equal additions to incomes further suggests that equal increases in all incomes reduce inequality more effectively than proportionate increases. Dalton concludes that the relative standard deviation and the relative mean difference are the most suitable measures for imperfect statistical data, while the relative mean difference is slightly preferable due to its graphical representation through the Lorenz curve. He emphasizes the importance of improving statistical data, especially for smaller incomes, to better measure and understand income inequality.