A stochastic dominance approach to the measurement of discrimination
This note suggests a bridge between stochastic dominance (Rothschild and Stiglitz, 1970 , 1973 ), inequality measurement (Atkinson, 1970 ) and discrimination measurement (Gastwirth, 1975 ). Discrimination orderings are defined and illustrated through discrimination curves, in the same spirit as stochastic dominance analysis. The main result, which links the second order discrimination curve and the Gastwirth discrimination index, also generalizes the equivalence between Generalized Lorenz dominance and second order stochastic dominance.
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- Michael Rothschild & Joseph E. Stiglitz, 1972.
"Some Further Results on the Measurement of Inequality,"
Cowles Foundation Discussion Papers
344, Cowles Foundation for Research in Economics, Yale University.
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- Foster, James E. & Shorrocks, Anthony F., 1988. "Inequality and poverty orderings," European Economic Review, Elsevier, vol. 32(2-3), pages 654-661, March.
- Jenkins, Stephen P., 1994. "Earnings discrimination measurement : A distributional approach," Journal of Econometrics, Elsevier, vol. 61(1), pages 81-102, March.
- 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.
- Rothschild, Michael & Stiglitz, Joseph E., 1970. "Increasing risk: I. A definition," Journal of Economic Theory, Elsevier, vol. 2(3), pages 225-243, September.
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