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Restricted Inequality and Relative Poverty

Jean-Yves Duclos and Paul Makdissi (paul.makdissi@uottawa.ca)

A chapter in Inequality and Poverty, 2007, pp 255-280 from Emerald Group Publishing Limited

Abstract: This paper develops criteria for an alternative concept of inequality dominance and shows how they relate to criteria for comparing relative poverty. The results warn inter alia against the use of some popular indices of inequality. They do, however, provide an ethical basis for the use of other popular indices of (restricted) inequality as potential relative poverty indices. The results also suggest an interesting extension of the Schutz coefficient as well as a use of Lorenz curves for the analysis of relative poverty and restricted inequality. A graphical illustration shows how the new criteria of restricted inequality dominance extend the ranking power of previously proposed inequality dominance criteria.

Date: 2007
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Working Paper: Restricted Inequality and Relative Poverty (2001) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:eme:reinzz:s1049-2585(06)14012-0

DOI: 10.1016/S1049-2585(06)14012-0

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