Single Crossing Lorenz Curves and Inequality Comparisons
AbstractSince the order generated by the Lorenz criterion is partial, it is a natural question to wonder how to extend this order. Most of the literature that is concerned with that question focuses on local changes in the income distribution. We follow a different approach, and define uniform $\alpha$-spreads, which are global changes in the income distribution. We give necessary and sufficient conditions for an Expected Utility or Rank-Dependent Expected Utility maximizer to respect the principle of transfers and to be favorable to uniform $\alpha$-spreads. Finally, we apply these results to inequality indices.
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Bibliographic InfoPaper provided by HAL in its series Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) with number halshs-00086028.
Date of creation: 2004
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Publication status: Published, Mathematical Social Sciences, 2004, 47, 1, 21-36
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Inequality measures; Intersecting Lorenz Curves; Spreads;
Other versions of this item:
- Gajdos, Thibault, 2004. "Single crossing Lorenz curves and inequality comparisons," Mathematical Social Sciences, Elsevier, vol. 47(1), pages 21-36, January.
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