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Ray-invariant intermediate inequality measures: A Lorenz dominance criterion

Author

Listed:
  • Francisco Azpitarte

    (University of Melbourne)

  • Olga Alonso-Villar

    (Universidade de Vigo)

Abstract

This paper introduces a new Lorenz dominance criterion that allows ranking income distributions according to ray-invariant intermediate inequality measures. In doing so, it defines a-Lorenz curves by adapting the generalized Lorenz curves to this case. In addition, it provides an empirical illustration of these tools using Australian income data for the period 2001-2008. The results suggest that despite the reduction of relative inequality, inequality increased for most ray-invariant intermediate value judgments.

Suggested Citation

  • Francisco Azpitarte & Olga Alonso-Villar, 2011. "Ray-invariant intermediate inequality measures: A Lorenz dominance criterion," Working Papers 226, ECINEQ, Society for the Study of Economic Inequality.
    • Handle: RePEc:inq:inqwps:ecineq2011-226
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    File URL: http://www.ecineq.org/milano/WP/ECINEQ2011-226.pdf
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    References listed on IDEAS

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    3. Bossert, Walter & Pfingsten, Andreas, 1990. "Intermediate inequality: concepts, indices, and welfare implications," Mathematical Social Sciences, Elsevier, vol. 19(2), pages 117-134, April.
    4. Coral Río & Olga Alonso-Villar, 2010. "New unit-consistent intermediate inequality indices," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 42(3), pages 505-521, March.
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    6. Sen, Amartya, 1973. "On Economic Inequality," OUP Catalogue, Oxford University Press, number 9780198281931.
    7. Coral del Río & Olga Alonso-Villar, 2008. "Rankings of income distributions: a note on intermediate inequality indices," Research on Economic Inequality, in: Inequality and Opportunity: Papers from the Second ECINEQ Society Meeting, pages 213-229, Emerald Group Publishing Limited.
    8. Tateo Yoshida, 2005. "Social welfare rankings of income distributions A new parametric concept of intermediate inequality," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 24(3), pages 557-574, June.
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    12. Satya Chakravarty & Swami Tyagarupananda, 2009. "The subgroup decomposable intermediate indices of inequality," Spanish Economic Review, Springer;Spanish Economic Association, vol. 11(2), pages 83-97, June.
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    Cited by:

    1. Subramanian Sreenivasan & Jayaraj Dhairiyarayar, 2013. "The Evolution of Consumption and Wealth Inequality in India: A Quantitative Assessment," Journal of Globalization and Development, De Gruyter, vol. 4(2), pages 253-281, November.
    2. Sreenivasan Subramanian & D. Jayaraj, 2015. "Growth and Inequality in the Distribution of India's Consumption Expenditure: 1983 to 2009-10," WIDER Working Paper Series wp-2015-025, World Institute for Development Economic Research (UNU-WIDER).

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    More about this item

    Keywords

    Income distribution; Lorenz dominance; Intermediate inequality indices; Ray-invariance.;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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