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Welfare Judgements in the Presence Contaminated Data

Author

Listed:
  • Frank A Cowell
  • Maria-Pia Victoria-Feser

Abstract

The economic analysis of income distribution and related topics makes extensive use of dominance criteria to draw inferences about welfare comparisons. However it is possible that - just as some inequality statistics can be very sensitive to extreme values - conclusions drawn from empirical implementations of dominance criteria may also be influenced by data contamination. We show the conditions under which this may occur and propose empirical methods to work round the problem.

Suggested Citation

  • Frank A Cowell & Maria-Pia Victoria-Feser, 1996. "Welfare Judgements in the Presence Contaminated Data," STICERD - Distributional Analysis Research Programme Papers 13, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
    • Handle: RePEc:cep:stidar:13
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    Cited by:

    1. Cowell, Frank & Victoria-Feser, Maria-Pia, 1998. "Statistical inference for Lorenz curves with censored data," LSE Research Online Documents on Economics 2049, London School of Economics and Political Science, LSE Library.
    2. Frank A Cowell & Maria-Pia Victoria-Feser, 2001. "Robust Lorenz Curves: A Semiparametric Approach," STICERD - Distributional Analysis Research Programme Papers 50, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
    3. Cowell, Frank & Litchfield, Julie & Mercader-Prats, Magda, 1999. "Income inequality comparisons with dirty data: the UK and Spain during the 1980s," LSE Research Online Documents on Economics 2240, London School of Economics and Political Science, LSE Library.

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