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The literature on economic problems connected with measuring and modelling of welfare and inequality has grown rapidly within the last decade. Since this literature is scattered throughout a great number of journals on economics, economic theory, econometrics, and statistics, it is difficult to get an adequate picture of the present state of the art. This book offers a representative cross-section of the latest results of research on the subject. The book is divided into four parts: I. Measurement of Inequality and Poverty II. Taxation and Redistribution III. Models and Measurement of Welfare IV. Models and Measurement Related to Welfare and Inequality