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Ray-invariant intermediate inequality measures: A Lorenz dominance criterion

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  • Francisco Azpitarte

    ()
    (University of Melbourne)

  • Olga Alonso-Villar

    (Universidade de Vigo)

Abstract

This paper introduces a new Lorenz dominance criterion that allows ranking income distributions according to ray-invariant intermediate inequality measures. 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 ray-invariant intermediate value judgments.

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File URL: http://www.ecineq.org/milano/WP/ECINEQ2011-226.pdf
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Bibliographic Info

Paper provided by ECINEQ, Society for the Study of Economic Inequality in its series Working Papers with number 226.

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Length: 19 pages
Date of creation: 2011
Date of revision:
Handle: RePEc:inq:inqwps:ecineq2011-226

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Keywords: Income distribution; Lorenz dominance; Intermediate inequality indices; Ray-invariance.;

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  1. Coral del Río & Olga Alonso-Villar, 2007. "New Unit-Consistent Intermediate Inequality Indices," Working Papers 63, ECINEQ, Society for the Study of Economic Inequality.
  2. Coral del Río & Olga Alonso-Villar, 2007. "Rankings of Income Distributions: A Note on Intermediate Inequality Indices," Working Papers 68, ECINEQ, Society for the Study of Economic Inequality.
  3. Seidl, Christian & Theilen, Bernd, 1994. "Stochastic independence of distributional attitudes and social status : A comparison of German and Polish data," European Journal of Political Economy, Elsevier, vol. 10(2), pages 295-310, July.
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