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Statistical Inferences for Testing Marginal Rank and (Generalized) Lorenz Dominances

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  • Buhong Zheng

Abstract

This paper provides distribution‐free inferences for testing marginal rank dominance and Lorenz, and generalized Lorenz dominances. Marginal dominances refer to ordinary dominance relationships holding between an income distribution and its dependent after‐event distribution. Using the elegant Bahadur representation, I establish the asymptotic normal distributions of sample marginal changes and derive the variance–covariance structures. I also show that the inference procedures can be modified and applied to more general cases where samples are (partially) dependent. The approaches are illustrated by re‐evaluating the marginal impacts of working wives on the U.S. family income distribution using 1990 census data.

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  • Buhong Zheng, 1999. "Statistical Inferences for Testing Marginal Rank and (Generalized) Lorenz Dominances," Southern Economic Journal, John Wiley & Sons, vol. 65(3), pages 557-570, January.
    • Handle: RePEc:wly:soecon:v:65:y:1999:i:3:p:557-570
    DOI: 10.1002/j.2325-8012.1999.tb00176.x
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    References listed on IDEAS

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