Robustness and Sensitivity

Instructor: Suman Seth, OPHI Researcher

Class Objectives:
· Robustness of inequality and poverty measures.
· Poverty ordering and dominance
· Agreement and disagreement among inequality measures

Presentation

Reading List
Basic readings:
FOSTER , J. E., and A. SHORROCKS. (1988): “Poverty Orderings and Welfare Dominance”, Social Choice and Welfare. 5: 179-198.
FOSTER , J. E., and A. K. SEN. (1997): “After a Quarter Century”, Substantial Appendix to A. K. Sen. On Economic Inequality, Part A.3. Oxford: Clarendon Press.

Further readings:

ATKINSON, A. (1970): “On the Measurement of Inequality”, Journal of Economic Theory. 2: 244-63.
ATKINSON, A. B. (1987): “On the Measurement of Poverty”, Econometrica. 55: 749-764.
BAWA, V.S. (1975): “Optimal Rules for Ordering Uncertain Prospects”, Journal of Financial Economics. 2: 95–121.
RAVALLION, M. (1994): Poverty Comparisons, Fundamentals of Pure and Applied Economics. Switzerland: Harwood Academic Publishers.
SHORROCKS, A.F. and J.E. FOSTER. (1987): “Transfer Sensitive Inequality Measures”, Review of Economic Studies. 54:  485-497.
SHORROCKS, A.F. (1983): “Ranking Income Distributions”, Economica. 50: 3-17.