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On the power of poverty orderings

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Author Info
Buhong Zheng () (Department of Economics, University of Colorado at Denver, Campus Box 181, P.O. Box 173364, Denver, CO 80217-3364, USA)
Abstract

This paper investigates the possibility of increasing the ordering power of additively separable poverty measures beyond the condition of second degree stochastic dominance by considering third degree stochastic dominance. For a fixed poverty line, the ordering power can be significantly enhanced by using the third degree criterion. For a range of poverty lines, the marginal power of the third degree criterion over the second degree depends critically upon the lower bound of the range; if the lower bound poverty line is arbitrarily close to zero, the two criteria coincide. The implications of a strong version of the transfer sensitivity axiom are also considered.

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Publisher Info
Article provided by Springer in its journal Social Choice and Welfare.

Volume (Year): 16 (1999)
Issue (Month): 3 ()
Pages: 349-371
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Handle: RePEc:spr:sochwe:v:16:y:1999:i:3:p:349-371

Note: Received: 20 November 1995/Accepted: 16 February 1998
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  1. Duclos, Jean-Yves & Makdissi, Paul & Wodon, Quentin, 2003. "Poverty-Efficient Transfer Programs: The Role of Targeting and Allocation Rules," Cahiers de recherche 0305, CIRPEE. [Downloadable!]
  2. Duclos, Jean-Yves & Makdissi, Paul, 2003. "Restricted and Unrestricted Dominance for Welfare, Inequality and Poverty Orderings," Cahiers de recherche 0303, CIRPEE. [Downloadable!]
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  3. Paul Makdissi & Stéphane Mussard, 2006. "Between-Group Transfers and Poverty-Reducing Tax Reforms," Cahiers de recherche 06-23, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke. [Downloadable!]
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  4. Sami Bibi & Paul Makdissi & Myra Yazbeck, 2009. "Equivalence Scales and Housing Deprivation Orderings: an Example Using Lebanese Data," Cahiers de recherche 0939, CIRPEE. [Downloadable!]
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  5. Michael Hoy & Buhong Zheng, 2008. "Measuring Lifetime Poverty," Working Papers 0814, University of Guelph, Department of Economics. [Downloadable!]
  6. Duclos, Jean-Yves & Makdissi, Paul & Wodon, Quentin, 2003. "Poverty-Reducing Tax Reforms with Heterogeneous Agents," Cahiers de recherche 0313, CIRPEE. [Downloadable!]
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  7. Paul Makdissi & Jean-Yves Duclos, 2002. "Socially-Improving Tax Reforms," Cahiers de recherche 02-01, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke, revised 2004. [Downloadable!]
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  8. Jean-Yves Duclos & Paul Makdissi, 2000. "Restricted and Unrestricted Dominance Welfare, Inequality and Povery Orderings," Cahiers de recherche 00-01, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke. [Downloadable!]
  9. Paul Makdissi & Quentin Wodon & Jean-Yves Duclos, 2002. "Poverty-dominant program reforms: the role of targeting and allocation rules," Cahiers de recherche 02-11, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke, revised 2004. [Downloadable!]
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  10. Paul Makdissi & Quentin Wodon, 2001. "Robust Comparisons of Natural Resources Depletion Indices," Cahiers de recherche 03-02, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke, revised 2003. [Downloadable!]
    Other versions:
  11. Paul MAKDISSI & Quentin WODON, 2003. "Robust Poverty Comparisons and Marginal Policy Reform Orderings Under Income Variability," Cahiers de recherche 03-05, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke. [Downloadable!]
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