Single crossing Lorenz curves and inequality comparisons
AbstractSince the order generated by the Lorenz criterion is partial, it is a natural question to wonder how to extend this order. Most of the literature that is concerned with that question focuses on local changes in the income distribution. We follow a different approach, and define uniform $\alpha$-spreads, which are global changes in the income distribution. We give necessary and sufficient conditions for an Expected Utility or Rank-Dependent Expected Utility maximizer to respect the principle of transfers and to be favorable to uniform $\alpha$-spreads. Finally, we apply these results to inequality indices.
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Bibliographic InfoArticle provided by Elsevier in its journal Mathematical Social Sciences.
Volume (Year): 47 (2004)
Issue (Month): 1 (January)
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Web page: http://www.elsevier.com/locate/inca/505565
Other versions of this item:
- Thibault Gajdos, 2004. "Single Crossing Lorenz Curves and Inequality Comparisons," UniversitÃ© Paris1 PanthÃ©on-Sorbonne (Post-Print and Working Papers) halshs-00086028, HAL.
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