Partial Multidimensional Inequality Orderings
AbstractThe paper investigates how comparisons of multivariate inequality can be made robust to varying the intensity of focus on the share of the population that are more relatively deprived. It follows the dominance approach to making inequality comparisons, as developed for instance by Atkinson (1970), Foster and Shorrocks (1988) and Formby, Smith, and Zheng (1999) in the unidimensional context, and Atkinson and Bourguignon (1982) in the multidimensional context. By focusing on those below a multidimensional inequality “frontier”, we are able to reconcile the literature on multivariate relative poverty and multivariate inequality. Some existing approaches to multivariate inequality actually reduce the distributional analysis to a univariate problem, either by using a utility function first to aggregate an individual’s multiple dimensions of well-being, or by applying a univariate inequality analysis to each dimension independently. One of our innovations is that unlike previous approaches, the distribution of relative well-being in one dimension is allowed to affect how other dimensions influence overall inequality. We apply our approach to data from India and Mexico using monetary and non-monetary indicators of well-being.
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Bibliographic InfoPaper provided by CIRPEE in its series Cahiers de recherche with number 1003.
Date of creation: 2010
Date of revision:
Inequality; multidimensional comparisons; stochastic dominance;
Other versions of this item:
- Duclos, Jean-Yves & Sahn, David E. & Younger, Stephen D., 2011. "Partial multidimensional inequality orderings," Journal of Public Economics, Elsevier, vol. 95(3), pages 225-238.
- Duclos, Jean-Yves & Sahn, David E. & Younger, Stephen D., 2011. "Partial multidimensional inequality orderings," Journal of Public Economics, Elsevier, vol. 95(3-4), pages 225-238, April.
- D3 - Microeconomics - - Distribution
- I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-04-17 (All new papers)
- NEP-LTV-2010-04-17 (Unemployment, Inequality & Poverty)
- NEP-MIC-2010-04-17 (Microeconomics)
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