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Coherence of inequality measures with respect to partial orderings of income distributions

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  • Chan, Terence

Abstract

This paper investigates the coherence of a new class of ratio-based inequality indices introduced in Chan (2022) with respect to certain partial orderings of the underlying income distributions. While coherence with respect to stochastic dominance has been extensively studied, the appropriate partial ordering for this new class of indices is quantile ratio dominance. This paper also establishes coherence with respect to quantile ratio dominance for some other classes of inequality indices which have been introduced by other authors. Finally, some connections between the notion of coherence and transfer principles are explored.

Suggested Citation

  • Chan, Terence, 2024. "Coherence of inequality measures with respect to partial orderings of income distributions," Mathematical Social Sciences, Elsevier, vol. 128(C), pages 90-99.
    • Handle: RePEc:eee:matsoc:v:128:y:2024:i:c:p:90-99
    DOI: 10.1016/j.mathsocsci.2024.02.002
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    References listed on IDEAS

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    1. Paul Embrechts & Marius Hofert, 2013. "A note on generalized inverses," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 77(3), pages 423-432, June.
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    5. Mas-Colell, Andreu & Whinston, Michael D. & Green, Jerry R., 1995. "Microeconomic Theory," OUP Catalogue, Oxford University Press, number 9780195102680.
    6. Chan, Terence, 2022. "On a new class of continuous indices of inequality," Mathematical Social Sciences, Elsevier, vol. 120(C), pages 8-23.
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