A Bistochastic Nonparametric Estimator

We explore the relevance of adopting a bistochastic nonparametric estimator. This estimator has two main implications. First, the estimator reduces variability according to the robust criterion of second-order stochastic (and Lorenz) dominance. This is a universally criterion in risk and welfare economics, which expands the applicability of nonparametric estimation in economics, for instance to the measurement of economic discrimination. Second, the bistochastic estimator produces smaller errors than do positive-weights nonparametric estimators, in terms of the bias-variance trade-off. This result is verified in a general simulation exercise. This improvement is due to a significant reduction in boundary bias, which makes the estimator itself useful in empirical applications. Finally, consistency, preservation of the mean value, and multidimensional extension are some other useful properties of this estimator.nonparametric estimation, second-order stochastic dominance, bistochastic estimator

Poverty orderings and intra-household inequality: The lost axiom

We investigate under which conditions it is possible to infer the evolution of poverty at the individual level from the knowledge of poverty among households. Poverty measurement is approached by the poverty orderings introduced by Foster and Shorrocks (1988). The analysis is based on a reduced form of household bargaining (Peluso and Trannoy 2007) and provides results in terms of preservation of poverty orderings. We point out the main analogies and differences between inequality and poverty assessment, expressing them in terms of empirically testable conditions. In particular, knowing the change in poverty at the household level is not sufficient to deduce a similar change in poverty at the individual level. We need to know the change in the household income distributions far beyond their poverty line. The focus axiom does not hold in this context.Poverty orderings, intra-household allocation, concavity, focus axiom.

A Fuzzy Approach to the Measurement of Leakages for North American Health Systems

This paper uses a fuzzy-fuzzy stochastic dominance approach to compare patients' leakages in the Canadian and the U.S health care systems. Leakages are defined in terms of individuals who are in bad health and could not have access to health care when needed. To carry this comparison we rely on the assumption that Canada is a strong counterfactual for the U.S. We first develop a class of fuzzy leakages indices and incorporate them in a stochastic dominance framework to derive the dominance criterion. We then use the derived criterion to perform inter-country comparisons on the global level. To provide more insight, we decompose the analysis with respect to gender, ethnicity, income and education. Intra-country comparisons reveal the presence of income based leakage inequalities in both countries yet, gender, ethnic and education based disparities appear to be present in the U.S only. As for inter-country comparison, results are in general consistent with the hypothesis that leakages are less important under the Canadian health care system.Health care resources, Fuzzy sets, Leakage

Partial and complete equality-of-opportunity orderings

This paper proposes a partial equality-of-opportunity ordering based on the inequality-of-opportunity curve, a mechanism that gives preference to those who are worse in terms of opportunity. Moreover, it provides a complete ordering that depends on a sensitivity parameter representing the degree of priority in the equality-of-opportunity policy. The Moreno-Ternero approach is obtained as a particular case. This proposal is applied to a set of 11 countries to compare their degree of equality of opportunity. Results show the relevance for economic policy of observing inequality of opportunity over tranches. Denmark dominates, in terms of posttax income, all other economies.equality of opportunity, partial ordering, circumstances, responsibility.