A note on inequality criteria
The absolute differentials ordering (ADO) and the relative differentials ordering (RDO) have been introduced as suitable alternative inequality criteria to Lorenz ordering (LO). We provide two new alternative proofs that ADO and RDO are sub-orderings of LO. Furthermore, we point out some paradoxical situations , where these two different partial orderings fail to rank alternative income distributions.
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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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- Moyes Patrick, 1994. "Inequality Reducing and Inequality Preserving Transformations of Incomes: Symmetric and Individualistic Transformations," Journal of Economic Theory, Elsevier, vol. 63(2), pages 271-298, August.
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