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Lorenz and Stochastic Dominance Comparisons of European Income Distribution

Author

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  • Ryoicki Sakano
  • John Formby
  • John Bishop

Abstract

The goal of this paper is threefold. First, to make stochastic dominance comparisons as well as Lorenz orderings for five European countries. Second, to analyze the changes in distributions across time, and third, to explore whether there is evidence of convergence or divergence in European income distributions. They find that Lorenz curves became significantly more unequal in Sweden and the U.K., did not change significantly in Germany and France, and became more equal in the Netherlands. Their main conclusion is that as of the mid 1980s, European economic integration had not resulted in a convergence of standards of living as measured by rank and generalized Lorenz dominance.

Suggested Citation

  • Ryoicki Sakano & John Formby & John Bishop, 1995. "Lorenz and Stochastic Dominance Comparisons of European Income Distribution," LIS Working papers 124, LIS Cross-National Data Center in Luxembourg.
    • Handle: RePEc:lis:liswps:124
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    Cited by:

    1. David Lander & David Gunawan & William E. Griffiths & Duangkamon Chotikapanich, 2016. "Bayesian Assessment of Lorenz and Stochastic Dominance Using a Mixture of Gamma Densities," Department of Economics - Working Papers Series 2023, The University of Melbourne.
    2. David Lander & David Gunawan & William Griffiths & Duangkamon Chotikapanich, 2020. "Bayesian assessment of Lorenz and stochastic dominance," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 53(2), pages 767-799, May.

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