IDEAS home Printed from https://ideas.repec.org/p/shr/wpaper/01-06.html
   My bibliography  Save this paper

Restricted Inequality and Relative Poverty

Author

Listed:
  • Paul Makdissi

    () (Département d'économique, Université de Sherbrooke)

  • Jean-Yves Duclos

    () (Pavillon De sève, Université Laval, Sainte-Foy, Québec, Canada)

Abstract

This paper develops criteria for a new concept of restricted inequality dominance and show how they relate to criteria for comparing relative poverty. The results warn against the use of some popular indices of inequality.\ They do, however, suggest an interesting extension of the Schutz coefficient as well as a use of Lorenz curves for the analysis of relative poverty and restricted inequality. We also illustrate graphically how the new criteria of restricted inequality dominance extend the ranking power of previously proposed inequality dominance criteria.

Suggested Citation

  • Paul Makdissi & Jean-Yves Duclos, 2001. "Restricted Inequality and Relative Poverty," Cahiers de recherche 01-06, Departement d'Economique de l'École de gestion à l'Université de Sherbrooke.
  • Handle: RePEc:shr:wpaper:01-06
    as

    Download full text from publisher

    File URL: http://gredi.recherche.usherbrooke.ca/wpapers/01_06_pm.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Davies James & Hoy Michael, 1994. "The Normative Significance of Using Third-Degree Stochastic Dominance in Comparing Income Distributions," Journal of Economic Theory, Elsevier, vol. 64(2), pages 520-530, December.
    2. Rolf Aaberge, 2009. "Ranking intersecting Lorenz curves," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 33(2), pages 235-259, August.
    3. Claudio Zoli, 1999. "Intersecting generalized Lorenz curves and the Gini index," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 16(2), pages 183-196.
    4. Foster, James E. & Shorrocks, Anthony F., 1988. "Inequality and poverty orderings," European Economic Review, Elsevier, vol. 32(2-3), pages 654-661, March.
    5. Chakravarty, Satya R., 1983. "A new index of poverty," Mathematical Social Sciences, Elsevier, vol. 6(3), pages 307-313, December.
    6. Anthony F. Shorrocks & James E. Foster, 1987. "Transfer Sensitive Inequality Measures," Review of Economic Studies, Oxford University Press, vol. 54(3), pages 485-497.
    7. Russell Davidson & Jean-Yves Duclos, 2000. "Statistical Inference for Stochastic Dominance and for the Measurement of Poverty and Inequality," Econometrica, Econometric Society, pages 1435-1464.
    8. Dasgupta, Partha & Sen, Amartya & Starrett, David, 1973. "Notes on the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 6(2), pages 180-187, April.
    9. Buhong Zheng, 2001. "Poverty orderings: A graphical illustration," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 18(1), pages 165-178.
    10. Sutherland, Holly & Immervoll, Herwig & O'Donoghue, Cathal, 1999. "An introduction to EUROMOD," EUROMOD Working Papers EM0/99, EUROMOD at the Institute for Social and Economic Research.
    11. Luc Savard, 2005. "Poverty and Inequality Analysis within a CGE Framework: A Comparative Analysis of the Representative Agent and Microsimulation Approaches," Development Policy Review, Overseas Development Institute, pages 313-331.
    12. Ravallion, Martin, 1994. "Measuring Social Welfare with and without Poverty Lines," American Economic Review, American Economic Association, pages 359-364.
    13. Jean-Yves Duclos & Paul Makdissi, 2004. "Restricted and Unrestricted Dominance for Welfare, Inequality, and Poverty Orderings," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 6(1), pages 145-164, February.
    14. Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
    15. Blackorby, Charles & Donaldson, David, 1978. "Measures of relative equality and their meaning in terms of social welfare," Journal of Economic Theory, Elsevier, vol. 18(1), pages 59-80, June.
    16. Zheng, Buhong, et al, 2000. "Inequality Orderings, Normalized Stochastic Dominance, and Statistical Inference," Journal of Business & Economic Statistics, American Statistical Association, vol. 18(4), pages 479-488, October.
    17. Blakorby, Charles & Donaldson, David, 1980. "Ethical Indices for the Measurement of Poverty," Econometrica, Econometric Society, vol. 48(4), pages 1053-1060, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Alex Siméon & Dorothée Boccanfuso, 2006. "Pauvreté, croissance et redistribution en Haïti," Cahiers de recherche 06-17, Departement d'Economique de l'École de gestion à l'Université de Sherbrooke.
    2. Paul Makdissi & Cyril Téjédo, 2000. "Problèmes d’appariement et politique de l’emploi," Cahiers de recherche 00-04, Departement d'Economique de l'École de gestion à l'Université de Sherbrooke.
    3. John Baldwin & Petr Hanel & David Sabourin, 2000. "Les déterminants des activités d’innovation dans les entreprises de fabrication canadiennes : le rôle des droits de propriété intellectuelle," Cahiers de recherche Statistique Canada No 11F, Departement d'Economique de l'École de gestion à l'Université de Sherbrooke.
    4. Duclos, Jean-Yves, 2006. "Liberté ou égalité?," L'Actualité Economique, Société Canadienne de Science Economique, vol. 82(4), pages 441-476, décembre.
    5. Jean-Yves Duclos & Paul Makdissi, 2004. "Restricted and Unrestricted Dominance for Welfare, Inequality, and Poverty Orderings," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 6(1), pages 145-164, February.
    6. Pene Kalulumia & Denis Bolduc, 2004. "Generalized Mixed Estimation Of A Multinomial Discretecontinuous Choice Model For Electricity Demand," Cahiers de recherche 04-01, Departement d'Economique de l'École de gestion à l'Université de Sherbrooke.
    7. Pene Kalulumia, 2002. "Effects of government debt on interest rates: evidence from causality tests in johansen-type models," Cahiers de recherche 02-07, Departement d'Economique de l'École de gestion à l'Université de Sherbrooke.
    8. Petr Hanel, 2003. "Impact Of Government Support Programs On Innovation By Canadian Manufacturing Firms," Cahiers de recherche 04-02, Departement d'Economique de l'École de gestion à l'Université de Sherbrooke.
    9. Cyril Téjédo & Michel Truchon, 2002. "Monotonicity and Bounds for Cost Shares under the Path Serial Rule," CIRANO Working Papers 2002s-43, CIRANO.

    More about this item

    Keywords

    Inequality; Poverty; Stochastic Dominance;

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:shr:wpaper:01-06. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Luc Savard). General contact details of provider: http://edirc.repec.org/data/deushca.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.