Bounded Sequential Dominance Criteria

Erwin Ooghe

Working Papers of Department of Economics, Leuven from KU Leuven, Faculty of Economics and Business (FEB), Department of Economics, Leuven

Abstract: In the spirit of Fleurbaey et al. (2001), it is tempting to introduce more reasonable lower and upper bounds in Atkinson and Bourguigon’s (1987) sequential generalized Lorenz dominance procedure. Unfortunately, our proposal leads, at best, to an average household income criterion, which is unsuited to make heterogeneous welfare comparisons. We therefore restrict attention to imposing either lower or upper bounds, resulting in two new sequential dominance criteria.

Date: 2004-03
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