Instructor: Maria Emma Santos, OPHI Research Officer
- Conditions for first, second and third order stochastic dominance in the unidimensional space
- Link between these conditions and the FGT class of poverty measures
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Suggested basic readings on this topic:
ATKINSON, A. B. (1987): “On the Measurement of Poverty”, Econometrica. 55: 749-764.
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.
ATKINSON, A. (1970): “On the Measurement of Inequality”, Journal of Economic Theory. 2: 244-63.
BAWA, V.S. (1975): “Optimal Rules for Ordering Uncertain Prospects”, Journal of Financial Economics. 2: 95–121.
FIELDS, G. (2001), Distribution and Development: A New Look at the Developing World, MIT Press.
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.