Rearrangements and Sequential Rank Order Dominance. A Result with Economic Applications
AbstractDistributive analysis typically involves comparisons of heterogeneous distributions where\r\nindividuals differ in more than just one attribute. In the particular case where there are two\r\nattributes and where the distribution of one of these two attributes is fixed, one can appeal\r\nto sequential rank order dominance for comparing distributions. We consider the degenerate\r\ncase where all individuals differ with respect to the attribute whose distribution is fixed and we show that sequential rank order domination of one distribution over another implies that the dominating distribution can be obtained from the dominated one by means of a finite sequence of favourable permutations, and conversely. We provide three examples where favourable permutations prove to have interesting implications from a normative point of view.
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Bibliographic InfoPaper provided by Groupe de Recherche en Economie Théorique et Appliquée in its series Cahiers du GREThA with number 2011-35.
Date of creation: 2011
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Rearrangements; Favourable Permutations; Sequential Rank Order Dominance; Matching; Mobility; Impatience;
Find related papers by JEL classification:
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-11-14 (All new papers)
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