Can We Make Unambiguous Inequality Comparisons When Lorenz Curves Intersect? An Essay
16 Pages Posted: 28 Dec 2011
Date Written: December 20, 2009
Abstract
This essay outlines the exact definition of “Equality” and “Inequality” in economics. The discussion moves forward to review concepts of ranking of orderings and methodology of constructing Indices of Inequality with an emphasis on Lorenz Orderings. We also discuss the possibility of comparing between two distributions (i.e. two Lorenz Curves/Orderings), and extend the analysis to analyse the ambiguity of comparisons when the case when Lorenz curves intersect.
Keywords: Stochastic Dominance, Inequality Indices, Lorenz Curves
JEL Classification: D63, D31, I32
Suggested Citation: Suggested Citation
Rostom, Ahmed Mohamed, Can We Make Unambiguous Inequality Comparisons When Lorenz Curves Intersect? An Essay (December 20, 2009). Available at SSRN: https://ssrn.com/abstract=1977483 or http://dx.doi.org/10.2139/ssrn.1977483
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