Single Crossing Lorenz Curves and Inequality Comparisons
Since the order generated by the Lorenz criterion is partial, it is a natural question to wonder how to extend this order. Most of the literature that is concerned with that question focuses on local changes in the income distribution. We follow a different approach, and define uniform $\alpha$-spreads, which are global changes in the income distribution. We give necessary and sufficient conditions for an Expected Utility or Rank-Dependent Expected Utility maximizer to respect the principle of transfers and to be favorable to uniform $\alpha$-spreads. Finally, we apply these results to inequality indices.
|Date of creation:||2004|
|Date of revision:|
|Publication status:||Published, Mathematical Social Sciences, 2004, 47, 1, 21-36|
|Note:||View the original document on HAL open archive server: http://halshs.archives-ouvertes.fr/halshs-00086028|
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