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Poverty, Inequality and Stochastic Dominance, Theory and Practice: Illustration with Burkina Faso Surveys

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Abdelkrim Araar

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Abstract

In this paper we provide a set of rules that can be used to check poverty or inequality dominance using discrete data. Existing theoretical rules assumes continuity in incomes or in percentiles of population. In reality, with the form of household surveys, this continuity does not exist. However, the said discontinuity can be exploited in testing the stochastic dominance. Moreover, in this paper, we proprose the stochastic dominance conditions that take into account the statistical robustness in testing the stochastic dominance. Findings of this paper are illustrated using the Burkina Faso's household surveys for the years of 1994 and 1998.

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Paper provided by CIRPEE in its series Cahiers de recherche with number 0634.

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Date of creation: 2006
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Handle: RePEc:lvl:lacicr:0634

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Related research
Keywords: Stochastic Dominance; Poverty; Inequality;

Find related papers by JEL classification:
D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
D64 - Microeconomics - - Welfare Economics - - - Altruism

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  1. Foster, James E & Shorrocks, Anthony F, 1988. "Poverty Orderings," Econometrica, Econometric Society, vol. 56(1), pages 173-77, January. [Downloadable!] (restricted)
  2. Russell Davidson & Jean-Yves Duclos, 2000. "Statistical Inference for Stochastic Dominance and for the Measurement of Poverty and Inequality," Econometrica, Econometric Society, vol. 68(6), pages 1435-1464, November.
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  3. Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Abdelkrim Araar & Jean-Yves Duclos & Mathieu Audet & Paul Makdissi, 2007. "Testing for Pro-poorness of Growth, with an Application to Mexico," Cahiers de recherche 0709, CIRPEE. [Downloadable!]
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This page was last updated on 2009-11-19.


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