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A Dominance Criterion for Measuring Income Inequality from a Centrist View: The Case of Australia

Author

Listed:
  • Francisco Azpitarte

    (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)

  • Olga Alonso-Villar

    (Department of Applied Economics, University of Vigo)

Abstract

This paper introduces a new Lorenz dominance criterion that allows ranking income distributions according to centrist measures à la Seidl and Pfingsten (1997). In doing so, it defines a-Lorenz curves by adapting the generalized Lorenz curves to this case. In addition, it provides an empirical illustration of these tools using Australian income data for the period 2001–2008. The results suggest that despite the reduction of relative inequality, inequality increased for most centrist value judgments.

Suggested Citation

  • Francisco Azpitarte & Olga Alonso-Villar, 2012. "A Dominance Criterion for Measuring Income Inequality from a Centrist View: The Case of Australia," Melbourne Institute Working Paper Series wp2012n03, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    • Handle: RePEc:iae:iaewps:wp2012n03
    as

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    File URL: http://melbourneinstitute.unimelb.edu.au/downloads/working_paper_series/wp2012n03.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Income distribution; Lorenz dominance; intermediate inequality indices; Ray-invariance; Australia;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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