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Restricted Inequality and Relative Poverty

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Author Info

  • Paul Makdissi

    ()
    (Département d'économique, Université de Sherbrooke)

  • Jean-Yves Duclos

    ()
    (Pavillon De sève, Université Laval, Sainte-Foy, Québec, Canada)

Abstract

This paper develops criteria for a new concept of restricted inequality dominance and show how they relate to criteria for comparing relative poverty. The results warn against the use of some popular indices of inequality.\ They do, however, suggest an interesting extension of the Schutz coefficient as well as a use of Lorenz curves for the analysis of relative poverty and restricted inequality. We also illustrate graphically how the new criteria of restricted inequality dominance extend the ranking power of previously proposed inequality dominance criteria.

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File URL: http://gredi.recherche.usherbrooke.ca/wpapers/01_06_pm.pdf
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Bibliographic Info

Paper provided by Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke in its series Cahiers de recherche with number 01-06.

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Length: 33 pages
Date of creation: 2001
Date of revision:
Handle: RePEc:shr:wpaper:01-06

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Postal: Sherbrooke, Québec, J1K 2R1
Phone: (819) 821-7233
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Web page: http://www.gredi.org/home/documents-de-travail
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Keywords: Inequality; Poverty; Stochastic Dominance;

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References

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  1. Ravallion, Martin, 1994. "Measuring Social Welfare with and without Poverty Lines," American Economic Review, American Economic Association, vol. 84(2), pages 359-64, May.
  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.
  3. Aaberge, Rolf, 2008. "Ranking Intersecting Lorenz Curves," IZA Discussion Papers 3852, Institute for the Study of Labor (IZA).
  4. Hoy, M. & Davies, J., 1991. "The Normative Significance of Using Third-Degree Stochastic Dominance in Comparing Income Distributions," Working Papers 1991-8, University of Guelph, Department of Economics and Finance.
  5. Buhong Zheng, 2001. "Poverty orderings: A graphical illustration," Social Choice and Welfare, Springer, vol. 18(1), pages 165-178.
  6. Duclos, Jean-Yves & Makdissi, Paul, 2003. "Restricted and Unrestricted Dominance for Welfare, Inequality and Poverty Orderings," Cahiers de recherche 0303, CIRPEE.
  7. Blakorby, Charles & Donaldson, David, 1980. "Ethical Indices for the Measurement of Poverty," Econometrica, Econometric Society, vol. 48(4), pages 1053-60, May.
  8. Chakravarty, Satya R., 1983. "A new index of poverty," Mathematical Social Sciences, Elsevier, vol. 6(3), pages 307-313, December.
  9. Shorrocks, Anthony F & Foster, James E, 1987. "Transfer Sensitive Inequality Measures," Review of Economic Studies, Wiley Blackwell, vol. 54(3), pages 485-97, July.
  10. Claudio Zoli, 1999. "Intersecting generalized Lorenz curves and the Gini index," Social Choice and Welfare, Springer, vol. 16(2), pages 183-196.
  11. Foster, James E. & Shorrocks, Anthony F., 1988. "Inequality and poverty orderings," European Economic Review, Elsevier, vol. 32(2-3), pages 654-661, March.
  12. Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
  13. Sutherland, Holly & Immervoll, Herwig & O'Donoghue, Cathal, 1999. "An introduction to EUROMOD," EUROMOD Working Papers EM0/99, EUROMOD at the Institute for Social and Economic Research.
  14. Dasgupta, Partha & Sen, Amartya & Starrett, David, 1973. "Notes on the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 6(2), pages 180-187, April.
  15. Blackorby, Charles & Donaldson, David, 1978. "Measures of relative equality and their meaning in terms of social welfare," Journal of Economic Theory, Elsevier, vol. 18(1), pages 59-80, June.
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Citations

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Cited by:
  1. Duclos, Jean-Yves & Makdissi, Paul, 2000. "Restricted and Unrestricted Dominance for Welfare, Inequality and Poverty Orderings," Cahiers de recherche 0001, Université Laval - Département d'économique.
  2. Pene Kalulumia & Denis Bolduc, 2004. "Generalized Mixed Estimation Of A Multinomial Discretecontinuous Choice Model For Electricity Demand," Cahiers de recherche 04-01, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke.
  3. Paul Makdissi & Cyril Téjédo, 2000. "Problèmes d’appariement et politique de l’emploi," Cahiers de recherche 00-04, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke.
  4. Pene Kalulumia, 2002. "Effects of government debt on interest rates: evidence from causality tests in johansen-type models," Cahiers de recherche 02-07, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke.
  5. Jean-Yves Duclos, 2006. "Liberté ou égalité?," Cahiers de recherche 0630, CIRPEE.
  6. Petr Hanel & Snezana VUCIC, 2002. "L’Impact Économique Des Activités De Recherche De L’Université De Sherbrooke," Cahiers de recherche 02-04, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke.
  7. John Baldwin & Petr Hanel & David Sabourin, 2000. "Les déterminants des activités d’innovation dans les entreprises de fabrication canadiennes : le rôle des droits de propriété intellectuelle," Cahiers de recherche Statistique Canada No 11F, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke.
  8. Alex Siméon & Dorothée Boccanfuso, 2006. "Pauvreté, croissance et redistribution en Haïti," Cahiers de recherche 06-17, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke.
  9. Petr Hanel, 2003. "Impact Of Government Support Programs On Innovation By Canadian Manufacturing Firms," Cahiers de recherche 04-02, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke.

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