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A note on inequality criteria

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  • SAVAGLIO, Ernesto
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    Abstract

    The absolute differentials ordering (ADO) and the relative differentials ordering (RDO) have been introduced as suitable alternative inequality criteria to Lorenz ordering (LO). We provide two new alternative proofs that ADO and RDO are sub-orderings of LO. Furthermore, we point out some paradoxical situations , where these two different partial orderings fail to rank alternative income distributions.

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    File URL: http://alfresco.uclouvain.be/alfresco/download/attach/workspace/SpacesStore/a0eca642-5a68-49a8-846b-998406f85902/coredp_2001_14.pdf
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    Bibliographic Info

    Paper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 2001014.

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    Date of creation: 00 Mar 2001
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    Handle: RePEc:cor:louvco:2001014

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    Keywords: inequality; orderings; transfers;

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    References

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    1. Michael Rothschild & Joseph E. Stiglitz, 1972. "Some Further Results on the Measurement of Inequality," Cowles Foundation Discussion Papers 344, Cowles Foundation for Research in Economics, Yale University.
    2. Dasgupta, Partha & Sen, Amartya & Starrett, David, 1973. "Notes on the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 6(2), pages 180-187, April.
    3. Moyes Patrick, 1994. "Inequality Reducing and Inequality Preserving Transformations of Incomes: Symmetric and Individualistic Transformations," Journal of Economic Theory, Elsevier, vol. 63(2), pages 271-298, August.
    4. Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
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    Cited by:
    1. Ernesto Savaglio, 2004. "Multivariate Differences Ordering," Department of Economics University of Siena 419, Department of Economics, University of Siena.
    2. Zhengli Gu & Paul Madden, 2009. "Inequality in the relative differential sense with continuous distributions," Journal of Economic Inequality, Springer, vol. 7(2), pages 179-187, June.
    3. Savaglio, Ernesto, 2007. "Inequality as differences: A simple characterization," Research in Economics, Elsevier, vol. 61(1), pages 31-36, March.

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