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Inequality with Ordinal Data

Author

Listed:
  • Frank Cowell
  • Emmanuel Flachaire

    (GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique)

Abstract

The standard theory of inequality measurement assumes that the equalisand is a cardinal quantity, with known cardinalization. However, one often needs to make inequality comparisons where either the cardinalization is unknown or the underlying data are categorical. We propose an alternative approach to inequality analysis that is rigorous, has a natural interpretation, and embeds both the ordinal data problem and the well-known cardinal data problem. We show how the approach can be applied to the inequality of happiness and of health status.

Suggested Citation

  • Frank Cowell & Emmanuel Flachaire, 2017. "Inequality with Ordinal Data," Post-Print hal-01682346, HAL.
    • Handle: RePEc:hal:journl:hal-01682346
    DOI: 10.1111/ecca.12232
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    References listed on IDEAS

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