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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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    File URL: http://www.cirpee.org/fileadmin/documents/Cahiers_2006/CIRPEE06-34.pdf
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    References listed on IDEAS

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    1. 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.
    2. Foster, James E & Shorrocks, Anthony F, 1988. "Poverty Orderings," Econometrica, Econometric Society, vol. 56(1), pages 173-177, January.
    3. 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. 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.
    2. Isis Gaddis & Lionel Demery, 2012. "Benefit incidence analysis, needs and demography. Measurement issues and an empirical study for Kenya," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 122, Courant Research Centre PEG.

    More about this item

    Keywords

    Stochastic Dominance; Poverty; Inequality;

    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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