The Prior Source of Second Main Stream and Optimal Criteria of Income Distribution
Gini coefficient,the quintile and Inverted-U theory of income distributions are empirical methods and lack strong theoreti-cal support,being not enough to support to build a harmonious and stable olive-type distribution structure and realize a society of common prosperity.We find:(1)the second main stream of income distribution can be traced back to"the law of unequal distribution"in Edgeworth(1877);(2)Edgeworth founded his law by a solid Economics theory.Then at first,we theoretical-ly support the measurement and criterion for income distributions by Edgeworth's production contract curve.Secondly,we propose four optimal measurements and criteria for income distribution unifying both efficiency and fairness:criteria of optimal distribution curve,optimal Gini coefficient,optimal classification ratio and optimal olive-type structure,to enhance the value of analysis of changes in income distribution inequality.Finally,we propose that the current statistical results do not imply in-come distribution in China appear to be the shapes of pyramid and dumbbell,that these shapes are caused by not focusing on the harmony between material and immaterial incomes.
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