Poverty, Inequality and Stochastic Dominance, Theory and Practice: The Case of Burkina Faso

Abdelkrim Araar

Working Papers PMMA from PEP-PMMA

Abstract: In this paper we provide a set of rules that can be used to check poverty or inequality dominance using discrete data. Existing theoretical rules assume continuity in incomes or in percentiles of the population. In reality, with the usual household surveys, this continuity does not exist. However, such a discontinuity can be exploited to test for stochastic dominance. This paper also proposes stochastic dominance conditions that check for the statistical robustness of the inferred rankings. The methodology of this paper is illustrated using Burkina Faso's household surveys for the years of 1994 and 1998.

Keywords: Stochastic Dominance; Poverty; Inequality (search for similar items in EconPapers)
JEL-codes: D63 D64 (search for similar items in EconPapers)
Date: 2007
New Economics Papers: this item is included in nep-afr and nep-dev
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:lvl:pmmacr:2007-08

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