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Distribution Free Statistical Inference for Inequality Dominance with Crossing Lorenx Curves


  • Beach, C.M.
  • Dividson, R.
  • Slotsve, G.A.


Distribution-free techniques of statistical inference are developed for the cumulative coefficients of variation of an income distribution, thus allowing one to test for inequality dominance when Lorenz curves cross. The full covariance structure of the cumulative sample means and variances is worked out. As an illustration, the procedures are applied to the 1984 and 1990 earnings distributions of male paid workers in the United States, and it is found that the 1990 distribution was significantly less unequal than the 1984 distribution.
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  • Beach, C.M. & Dividson, R. & Slotsve, G.A., 1995. "Distribution Free Statistical Inference for Inequality Dominance with Crossing Lorenx Curves," G.R.E.Q.A.M. 95a03, Universite Aix-Marseille III.
  • Handle: RePEc:fth:aixmeq:95a03

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    References listed on IDEAS

    1. Leo K. Simon, 1987. "Games with Discontinuous Payoffs," Review of Economic Studies, Oxford University Press, vol. 54(4), pages 569-597.
    2. Laffond G. & Laslier J. F. & Le Breton M., 1993. "The Bipartisan Set of a Tournament Game," Games and Economic Behavior, Elsevier, vol. 5(1), pages 182-201, January.
    3. Laffond, Gilbert & Laslier, Jean Francois & Le Breton, Michel, 1994. "Social-Choice Mediators," American Economic Review, American Economic Association, vol. 84(2), pages 448-453, May.
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    Cited by:

    1. Russell Davidson & Jean-Yves Duclos, 1997. "Statistical Inference for the Measurement of the Incidence of Taxes and Transfers," Econometrica, Econometric Society, vol. 65(6), pages 1453-1466, November.
    2. Rebecca Valenzuela & Hooi Hooi Lean, 2007. "Stochastic Dominance Analysis Of Australian Income Distributions," Monash Economics Working Papers 21-07, Monash University, Department of Economics.

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    wealth distribution;


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