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Poverty, Inequality and Stochastic Dominance, Theory and Practice: Illustration with Burkina Faso Surveys

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  • Abdelkrim Araar

Abstract

In this paper we provide a set of rules that can be used to check poverty or inequality dominance using discrete data. Existing theoretical rules assumes continuity in incomes or in percentiles of population. In reality, with the form of household surveys, this continuity does not exist. However, the said discontinuity can be exploited in testing the stochastic dominance. Moreover, in this paper, we proprose the stochastic dominance conditions that take into account the statistical robustness in testing the stochastic dominance. Findings of this paper are illustrated using the Burkina Faso's household surveys for the years of 1994 and 1998.

Suggested Citation

  • Abdelkrim Araar, 2006. "Poverty, Inequality and Stochastic Dominance, Theory and Practice: Illustration with Burkina Faso Surveys," Cahiers de recherche 0634, CIRPEE.
    • Handle: RePEc:lvl:lacicr:0634
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    References listed on IDEAS

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    1. Abdelkrim Araar & Jean-Yves Duclos, 2005. "An Atkinson-Gini Family of Social Evaluation Functions: Theory and Illustration Using Data from the Luxembourg Income Study," LIS Working papers 416, LIS Cross-National Data Center in Luxembourg.
    2. Russell Davidson & Jean-Yves Duclos, 2000. "Statistical Inference for Stochastic Dominance and for the Measurement of Poverty and Inequality," Econometrica, Econometric Society, vol. 68(6), pages 1435-1464, November.
    3. Foster, James E & Shorrocks, Anthony F, 1988. "Poverty Orderings," Econometrica, Econometric Society, vol. 56(1), pages 173-177, January.
    4. Jean-Yves Duclos & Abdelkrim Araar, 2006. "Poverty and Equity," Economic Studies in Inequality, Social Exclusion, and Well-Being, Springer, number 978-0-387-33318-2, Fall.
    5. Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
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    Cited by:

    1. Yashiv, Eran, 2020. "Moving from a Poor Economy to a Rich One: The Contradictory Roles of Technology and Job Tasks," IZA Discussion Papers 13131, Institute of Labor Economics (IZA).
    2. Abdelkrim Araar & Jean‐Yves Duclos & Mathieu Audet & Paul Makdissi, 2009. "Testing For Pro‐Poorness Of Growth, With An Application To Mexico," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 55(4), pages 853-881, December.
    3. Almas Heshmati & Esfandiar Maasoumi & Guanghua Wan, 2019. "An Analysis of the Determinants of Household Consumption Expenditure and Poverty in India," Economies, MDPI, vol. 7(4), pages 1-27, September.
    4. Eran Yashiv, 2020. "Moving from a Poor Economy to a Rich One: The Contradictory Roles of Technology and Job Tasks," Discussion Papers 2010, Centre for Macroeconomics (CFM).
    5. Eduardo Michel Camacho & Willy W. Cortez, 2012. "Distribución del ingreso y bienestar social en México 1984-2008," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 27(2), pages 347-378.
    6. Bernadette Kamgnia Dia & Simon Leunkeu Wangun & Christophe Tatsinkou & Josephine Afor, 2008. "Bénéfices acquis et ciblage des pauvres dans les dépenses publiques de santé et d'éducation au Cameroun," Working Papers PMMA 2008-08, PEP-PMMA.
    7. Aloysius Mom Njong, Paul Ningaye, 2008. "Characterizing Weights in the Measurement of Multidimensional Poverty: An Application of Data-Driven Approaches to Cameroonian Data," OPHI Working Papers 21, Queen Elizabeth House, University of Oxford.
    8. Iturra, Victor & Gallardo, Mauricio, 2022. "Schools, circumstances and inequality of opportunities in Chile," International Journal of Educational Development, Elsevier, vol. 95(C).

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    More about this item

    Keywords

    Stochastic Dominance; Poverty; Inequality;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers

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