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Single Crossing Lorenz Curves and Inequality Comparisons

Abstract : Since the order generated by the Lorenz criterion is partial, it is a natural question to wonder how to extend this order. Most of the literature that is concerned with that question focuses on local changes in the income distribution. We follow a different approach, and define uniform $\alpha$-spreads, which are global changes in the income distribution. We give necessary and sufficient conditions for an Expected Utility or Rank-Dependent Expected Utility maximizer to respect the principle of transfers and to be favorable to uniform $\alpha$-spreads. Finally, we apply these results to inequality indices.
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https://halshs.archives-ouvertes.fr/halshs-00086028
Contributor : Thibault Gajdos <>
Submitted on : Monday, July 17, 2006 - 3:54:14 PM
Last modification on : Thursday, April 22, 2021 - 1:20:03 PM
Long-term archiving on: : Monday, April 5, 2010 - 9:58:39 PM

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Thibault Gajdos. Single Crossing Lorenz Curves and Inequality Comparisons. Mathematical Social Sciences, Elsevier, 2004, 47 (1), pp.21-36. ⟨10.1016/S0165-4896(03)00078-7⟩. ⟨halshs-00086028⟩

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