Inequality with Ordinal Data

Frank Cowell () and Emmanuel Flachaire

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Abstract: The standard theory of inequality measurement assumes that the equalisand is a cardinal quantity, with known cardinalization. However, one often needs to make inequality comparisons where either the cardinalization is unknown or the underlying data are categorical. We propose an alternative approach to inequality analysis that is rigorous, has a natural interpretation, and embeds both the ordinal data problem and the well-known cardinal data problem. We show how the approach can be applied to the inequality of happiness and of health status.

Date: 2017-04
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Published in Economica, 2017, 84 (334), pp.290 - 321. ⟨10.1111/ecca.12232⟩

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Journal Article: Inequality with Ordinal Data (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-01682346

DOI: 10.1111/ecca.12232

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