Merging populations, stochastic dominance and Lorenz curves

Oded Stark and Shlomo Yitzhaki

Journal of Population Economics, 1988, vol. 1, issue 2, No 5, 157-161

Abstract: 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.

Date: 1988
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DOI: 10.1007/BF00163888

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