A Dominance Criterion for Measuring Income Inequality from a Centrist View: The Case of Australia
AbstractThis 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.
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Bibliographic InfoPaper provided by Melbourne Institute of Applied Economic and Social Research, The University of Melbourne in its series Melbourne Institute Working Paper Series with number wp2012n03.
Length: 22 pages
Date of creation: Feb 2012
Date of revision:
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More information through EDIRC
Income distribution; Lorenz dominance; intermediate inequality indices; Ray-invariance; Australia;
Find related papers by JEL classification:
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
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