Merging populations, stochastic dominance and Lorenz curves

O. Stark*, S. Yitzhaki

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

Abstract

In typical comparisons of inequality the condition that the means of the distributions are equal is hardly met. In these cases, the widely used Lorenz curves non-intersection criterion is neither a necessary nor sufficient condition for stochastic dominance. It is suggested to replace the Lorenz curves non-intersection criterion with an absolute Lorenz curves non-intersection criterion. The implications of adopting this criterion are discussed in the context of fixed populations and changing populations.

Original languageEnglish
Pages (from-to)157-161
Number of pages5
JournalJournal of Population Economics
Volume1
Issue number2
DOIs
StatePublished - Oct 1988
Externally publishedYes

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