Fleurbaey, Hagneré and Trannoy (2003) develop a bounded dominance test to make robust welfare comparisons, which is intermediate between Ebert’s (1999) cardinal dominance criterion – generalized Lorenz dominance applied to household incomes, divided and weighted by an equivalence scale – and Bourguignon’s (1989) ordinal dominance criterion. In this paper, we develop a more complete, but less robust bounded index test, which is intermediate between Ebert’s (1997) cardinal index test – an index applied to household incomes, divided and weighted by the equivalence scale – and a (new) sequential index test – an index applied to household incomes of the most needy only, the most and second most needy only, and so on. We illustrate the power of our test to detect welfare changes in Russia using data of the RLMS-surveys.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
page. Note that these files are not on the IDEAS
site. Please be patient as the files may be large.