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Mixed dominance: a new criterion for poverty analysis

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  • Howes, Stephen

Abstract

The second-order stochastic dominance criterion for inequality analysis introduced by Atkinson (1970) covers nearly all well-known inequality indices. The same cannot be said, in respect of poverty indices, for the second-order stochastic dominance criterion for poverty analysis introduced by Atkinson (1987). Indeed, two of the best known poverty indices, the head count ratio and the Sen indix are excluded by it. This paper introduces a more general 'mixed' dominance criterion which provides a more comprehensive coverage of poverty indice. By establishing the relationship between welfare and poverty functions, it also generalizes the proofs given by Atkinson (1987) to include non-separable as well as separable functions.

Suggested Citation

  • Howes, Stephen, 1993. "Mixed dominance: a new criterion for poverty analysis," LSE Research Online Documents on Economics 6636, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:6636
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    File URL: http://eprints.lse.ac.uk/6636/
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    Cited by:

    1. Ravallion, Martin, 1994. "Measuring Social Welfare with and without Poverty Lines," American Economic Review, American Economic Association, vol. 84(2), pages 359-364, May.
    2. Sheldon Danziger & Markus J ntti, 1999. "Income Poverty in Advanced Countries," LIS Working papers 193, LIS Cross-National Data Center in Luxembourg.

    More about this item

    Keywords

    poverty; second-order stochastic dominance criterion; welfare; inequality analyis;
    All these keywords.

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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