19,039 research outputs found

    Ratio Orderings and Comparative Statics

    Get PDF
    Monotone ratio orderings are refinements of first order stochastic dominance that allow monotone comparative statics results in games of incomplete information. We develop analogous refinements for second order stochastic dominance based on the monotonicity of the cumulative probability ratio and the unimodality of the likelihood and probability ratios. We go on to investigate comparative statics in first price auctions, both private and common value, of the effects of more precise information in the sense of the new orderings. We find that almost all types bid more aggressively under the new distribution than they did under the old, but the highest types may bid less. This leads to higher expected revenue in a simple common value auction, but to an ambiguous result in the private value case.monotone likelihood ratio, monotone probability ratio, conditional stochastic dominance, generalized Lorenz order, comparative statics, first price auctions, common value auctions

    On the estimation of the Lorenz curve under complex sampling designs

    Full text link
    This paper focuses on the estimation of the concentration curve of a finite population, when data are collected according to a complex sampling design with different inclusion probabilities. A (design-based) Hajek type estimator for the Lorenz curve is proposed, and its asymptotic properties are studied. Then, a resampling scheme able to approximate the asymptotic law of the Lorenz curve estimator is constructed. Applications are given to the construction of (i) a confidence band for the Lorenz curve, (ii) confidence intervals for the Gini concentration ratio, and (iii) a test for Lorenz dominance. The merits of the proposed resampling procedure are evaluated through a simulation study

    CHANGES IN SOCIAL WELFARE IN SINGAPORE - 1982-1999

    Get PDF
    This paper examines the changes in social welfare in Singapore using Labour Force Survey data. To study the changes and dominance, both ordinal and cardinal measures are used. By Lorenz Dominance social welfare in Singapore during 1999 is less than in 1991 while unambiguous conclusion cannot be made on the welfare ranking of 1982 and 1991 or of 1982 and 1999. 1999 ranks first according to the Generalized Lorenz Dominance; however, this criterion is also unable to make any unambiguous ranking between 1982 and 1991. The ranking based on Sen-Dagum-Yitzhaki-Sheshinski Social Welfare Function shows a continuous increase in the social welfare in Singapore. But when a more general Social Welfare Function is used a different ordering might occur.Lorenz Dominance, Generalised Lorenz Dominance, Social Welfare Function, Equity, Efficiency, Singapore Economy

    Consistent Nonparametric Tests for Lorenz Dominance

    Get PDF
    This paper proposes a test for Lorenz dominance. Given independent samples of income or other welfare related variable, we propose a test of the null hypothesis that the Lorenz curve for one population is dominated by the Lorenz curve for a second population. The test statistic is based on the standardized largest difference between the empirical Lorenz curves for the two samples. The test is nonparametric in the sense that no distributional assumptions are made and the test is consistent because it compares the Lorenz curves at all quantiles. We derive the asymptotic distribution of the test statistic under the null hypothesis. Since the limiting distribution of the test statistic is nonstandard, being dependent on the underlying Lorenz curves, we propose the use of two computer based procedures for conducting inference. The first is a simulation method that simulates p-values from an approximation to the underlying limiting distribution of the statistic while the second is based on the nonparametric bootstrap. We examine the performance of the methods in a Monte Carlo study and with a comparison of the income based Lorenz curves for the US and Canada.Lorenz dominance, test consistency, simulation.

    A theoretical and practical study on linear reforms of dual taxes

    Full text link
    [cat] En aquest treball extenem les reformes lineals introduĂŻdes per PfĂ€hler (1984) al cas d’impostos duals. Estudiem l’efecte relatiu que els retalls lineals duals d’un impost dual tenen sobre la distribuciĂł de la desigualtat -es pot fer un estudi simĂštric per al cas d’augments d’impostos-. Tambe introduĂŻm mesures del grau de progressivitat d’impostos duals i mostrem que estan connectades amb el criteri de dominaciĂł de Lorenz. Addicionalment, estudiem l’elasticitat de la cĂ rrega fiscal de cadascuna de les reformes proposades. Finalment, grĂ cies a un model de microsimulaciĂł i una gran base de dades que contĂ© informaciĂł sobre l’IRPF espanyol de l’any 2004, 1) comparem l’efecte que diferents reformes tindrien sobre l’impost dual espanyol i 2) estudiem quina redistribuciĂł de la riquesa va suposar la reforma dual de l’IRPF (Llei ’35/2006’) respecte l’anterior impost.[eng] We extend the linear reforms introduced by PfĂ€hler (1984) to the case of dual taxes. We study the relative effect that linear dual tax cuts have on the inequality of income distribution -a symmetrical study can be made for dual linear tax hikes-. We also introduce measures of the degree of progressivity for dual taxes and show that they can be connected to the Lorenz dominance criterion. Additionally, we study the tax liability elasticity of each of the reforms proposed. Finally, by means of a microsimulation model and a considerably large data set of taxpayers drawn from 2004 Spanish Income Tax Return population, 1) we compare different yield-equivalent tax cuts applied to the Spanish dual income tax and 2) we investigate how much income redistribution the dual tax reform (Act ‘35/2006’) introduced with respect to the previous tax

    Is the Value Added Tax Reform in India Poverty-Improving? An Analysis of Data from Two Major States

    Get PDF
    The Value Added Tax (VAT) was introduced in India in place of Sales Tax, taking effect in April 1, 2005. These taxes are in the domain of different state governments within the country's federal set up. Although VAT is widely acclaimed to be a better system than the sales tax on grounds of efficiency in tax collection, no study has been undertaken to assess the impact of this reform measure on social equity. This paper addresses this need with the use of concentration curves and consumption dominance curves of various orders. The simulations were done on two major states in India, namely Maharashtra and West Bengal, using National Sample Survey Unit Level data for the 55th round. The results show that the reform is largely pro-poor, although there are ways to improve it with respect to some items predominantly consumed by the relatively poorer groups.Value added tax, Marginal tax reform, public distribution system, concentration curve, Lorenz curve, marginal efficiency cost of funds, consumption dominance

    Parametric families for the Lorenz curve: an analysis of income distribution in European countries

    Get PDF
    The European Union Survey on Income and Living Conditions (EU-SILC) is the main source of information about living standards and poverty in the EU member states. We compare different parametric models for the Lorenz curve (LC) with an empirical analysis of the income distributions of 26 European countries in the year 2017. The objective of our empirical study is to verify whether simple mono-parametric models for the LCs can represent similarities or differences between European income distributions in sufficient detail, or whether an alternative, more sophisticated multi-parametric model should be used instead. In particular, we consider the power LC, the Pareto LC, the LamĂš LC, a generalised bi-parametric version of the LamĂš LC, a bi-parametric mixture of power LCs and the recently introduced arctan family of LCs. Whilst the first three families are ordered, in that different parametric values correspond to a situation of Lorenz ordering, the latter three may also identify the ambiguous situation of intersecting LCs. Therefore, besides focusing on the goodness-of-fit of the models considered and their mathematical simplicity, we evaluate the effectiveness of multi-parametric models in identifying the non-dominated cases

    Equality of opportunity and luck: Denitions and testable conditions, with an application to income in France

    Get PDF
    We oer a model of equality of opportunity that encompasses dierent conceptions expressed in the public and philosophical debates. In addition to circumstances whose eect on outcome should be compensated and eort which represents a legitimate source of inequality, we introduce a third factor, luck, that captures the random factors whose impact on outcome should be even-handed for equality of opportunity to be satised. Then, we analyse how the various denitions of equality of opportunity can be empirically identied, given data limitations and provide testable conditions. Denitions and conditions resort to standard stochastic dominance tools. Lastly, we develop an empirical analysis of equality of opportunity for income acquisition in France over the period 1979-2000 which reveals that the degree of inequality of opportunity tends to decrease and that the degree of risk of income distributions, conditional on social origin, appears very similar across all groups of social origins.Equality of opportunity, Luck, Stochastic dominance, Income distribution.

    New directions in the analysis of inequality and poverty

    No full text
    Over the last four decades, academic and wider public interest in inequality and poverty has grown substantially. In this paper we address the question: what have been the major new directions in the analysis of inequality and poverty over the last thirty to forty years? We draw attention to developments under seven headings: changes in the extent of inequality and poverty, changes in the policy environment, increased scrutiny of the concepts of ‘poverty’ and inequality’ and the rise of multidimensional approaches, the use of longitudinal perspectives, an increase in availability of and access to data, developments in analytical methods of measurement, and developments in modelling
    • 

    corecore