Partial multidimensional inequality orderings
The 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 is in the spirit of Sen (1970)'s partial orderings and follows the dominance approach to making inequality comparisons. 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. Our methods are also robust to choices of individual "utility" or aggregation functions. We apply our approach to data from India and Mexico to show inter alia how dependence between dimensions of well-being can influence relative poverty and inequality comparisons between two populations.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
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.:
- Sen, Amartya, 1973. "On Economic Inequality," OUP Catalogue, Oxford University Press, number 9780198281931.
- Russell Davidson & Jean-Yves Duclos, 2006.
"Testing For Restricted Stochastic Dominance,"
Departmental Working Papers
2006-20, McGill University, Department of Economics.
- Russell Davidson & Jean-Yves Duclos, 2009. "Testing for restricted stochastic dominance," Working Papers halshs-00443560, HAL.
- Davidson, Russell & Duclos, Jean-Yves, 2006. "Testing for Restricted Stochastic Dominance," IZA Discussion Papers 2047, Institute for the Study of Labor (IZA).
- Russell Davidson & Jean-Yves Duclos, 2006. "Testing for Restricted Stochastic Dominance," Working Papers 36, ECINEQ, Society for the Study of Economic Inequality.
- Russell Davidson & Jean-Yves Duclos, 2006. "Testing for Restricted Stochastic Dominance," Cahiers de recherche 0609, CIRPEE.
- Sen, Amartya, 1970. "Interpersonal Aggregation and Partial Comparability," Econometrica, Econometric Society, vol. 38(3), pages 393-409, May.
- Jean-Yves Duclos & David Sahn & Stephen D. Younger, 2005.
"Robust Multidimensional Spatial Poverty Comparisons in Ghana, Madagascar, and Uganda,"
Cahiers de recherche
- Jean-Yves Duclos & David Sahn & Stephen D. Younger, 2006. "Robust Multidimensional Spatial Poverty Comparisons in Ghana, Madagascar, and Uganda," World Bank Economic Review, World Bank Group, vol. 20(1), pages 91-113.
- Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May.
- Sen, Amartya K, 1976. "Poverty: An Ordinal Approach to Measurement," Econometrica, Econometric Society, vol. 44(2), pages 219-31, March.
- Atkinson, Anthony B & Bourguignon, Francois, 1982. "The Comparison of Multi-Dimensioned Distributions of Economic Status," Review of Economic Studies, Wiley Blackwell, vol. 49(2), pages 183-201, April.
- Foster, James E. & Shorrocks, Anthony F., 1988. "Inequality and poverty orderings," European Economic Review, Elsevier, vol. 32(2-3), pages 654-661, March.
- Sahn, David E. & Stifel, David C., 2000. "Poverty Comparisons Over Time and Across Countries in Africa," World Development, Elsevier, vol. 28(12), pages 2123-2155, December.
- Kaur, Amarjot & Prakasa Rao, B.L.S. & Singh, Harshinder, 1994. "Testing for Second-Order Stochastic Dominance of Two Distributions," Econometric Theory, Cambridge University Press, vol. 10(05), pages 849-866, December.
- Maasoumi, Esfandiar & Jeong, Jin Ho, 1985. "The trend and the measurement of world inequality over extended periods of accounting," Economics Letters, Elsevier, vol. 19(3), pages 295-301.
- David E. Sahn & David Stifel, 2003. "Exploring Alternative Measures of Welfare in the Absence of Expenditure Data," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 49(4), pages 463-489, December.
- Shorrocks, Anthony F, 1983. "Ranking Income Distributions," Economica, London School of Economics and Political Science, vol. 50(197), pages 3-17, February.
- Horton, S. & Ross, J., 2003. "The economics of iron deficiency," Food Policy, Elsevier, vol. 28(1), pages 51-75, February.
- Jean-Yves Duclos & David E. Sahn & Stephen D. Younger, 2006.
"Robust Multidimensional Poverty Comparisons,"
Royal Economic Society, vol. 116(514), pages 943-968, October.
- Tsui Kai-Yuen, 1995. "Multidimensional Generalizations of the Relative and Absolute Inequality Indices: The Atkinson-Kolm-Sen Approach," Journal of Economic Theory, Elsevier, vol. 67(1), pages 251-265, October.
- David Sahn & Stephen Younger, 2005. "Improvements in children’s health: Does inequality matter?," Journal of Economic Inequality, Springer, vol. 3(2), pages 125-143, August.
- Datt, Gaurav & Ravallion, Martin, 1992. "Growth and redistribution components of changes in poverty measures : A decomposition with applications to Brazil and India in the 1980s," Journal of Development Economics, Elsevier, vol. 38(2), pages 275-295, April.
- Ernesto Savaglio, 2006. "Multidimensional inequality with variable population size," Economic Theory, Springer, vol. 28(1), pages 85-94, 05.
- Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
- Sen, Amartya, 1983. "Poor, Relatively Speaking," Oxford Economic Papers, Oxford University Press, vol. 35(2), pages 153-69, July.
- Formby, John P. & Smith, W. James & Zheng, Buhong, 1999. "The coefficient of variation, stochastic dominance and inequality: A new interpretation," Economics Letters, Elsevier, vol. 62(3), pages 319-323, March.
- Maasoumi, Esfandiar & Nickelsburg, Gerald, 1988. "Multivariate Measures of Well-Being and an Analysis of Inequality in the Michigan Data," Journal of Business & Economic Statistics, American Statistical Association, vol. 6(3), pages 326-34, July.
When requesting a correction, please mention this item's handle: RePEc:eee:pubeco:v:95:y:2011:i:3-4:p:225-238. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If references are entirely missing, you can add them using this form.