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Welfare Judgements in the Presence Contaminated Data

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Author Info
Frank A Cowell
Maria-Pia Victoria-Feser

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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.

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Publisher Info
Paper provided by Suntory and Toyota International Centres for Economics and Related Disciplines, LSE in its series STICERD - Distributional Analysis Research Programme Papers with number 13.

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Date of creation: Jan 1996
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Handle: RePEc:cep:stidar:13

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Web page: http://sticerd.lse.ac.uk/_new/publications/default.asp

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Related research
Keywords: Welfare dominance; Lorenz curve; robustness;

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  1. Frank A Cowell & Julie Litchfield, 1999. "Income Inequality Comparisons with Dirty Data: The UK and Spain during the 1980s," STICERD - Distributional Analysis Research Programme Papers 45, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE. [Downloadable!]
  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. [Downloadable!]
  3. Frank A Cowell & Maria-Pia Victoria-Feser, 1998. "Statistical Inference for Lorenz Curves with Censored Data," STICERD - Distributional Analysis Research Programme Papers 35, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE. [Downloadable!]
Statistics
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This page was last updated on 2009-12-15.


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