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Statistical Inference for Stochastic Dominance and for the Measurement of Poverty and Inequality
Open accessAbstract
We derive the asymptotic sampling distribution of various estimators frequently used to order distributions in terms of poverty, welfare and inequality. This includes estimators of most of the poverty indices currently in use, as well as estimators of the curves used to infer stochastic dominance of any order. These curves can be used to determine whether poverty, inequality or social welfare is greater in one distribution than in another for general classes of indices. We also derive the sampling distribution of the maximal poverty lines (or income censoring thresholds) up to which we may confidently assert that poverty or social welfare is greater in one distribution than in another. The sampling distribution of convenient estimators for dual approaches to the measurement of poverty is also established. The statistical results are established for deterministic or stochastic poverty lines as well as for paired or independent samples of incomes. Our results are briefly illustrated using data for 6 countries drawn from the Luxembourg Income Study data bases.
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Cites
The Penn World Table (Mark 5): An Expanded Set of International Comparisons, 1950-1988
Summers, R., & Heston, A. (1991) · The Quarterly Journal of Economics · doi:10.2307/2937941 · Cited by 3,429
Cited by
Alkire, S., & Santos, M. E. (2014) · World Development · doi:10.1016/j.worlddev.2014.01.026 · Cited by 916
Exploring Alternative Measures of Welfare in the Absence of Expenditure Data
Sahn, D. E., & Stifel, D. (2003) · Review of Income and Wealth · doi:10.1111/j.0034-6586.2003.00100.x · Cited by 717
Polarization: Concepts, Measurement, Estimation
Duclos, J.-Y., Esteban, J., & Ray, D. (2004) · Econometrica · doi:10.1111/j.1468-0262.2004.00552.x · Cited by 606
Self-citationInference on Counterfactual Distributions
(2013) · Econometrica · doi:10.3982/ecta10582 · Cited by 601
Robust Multidimensional Poverty Comparisons
Duclos, J., Sahn, D. E., & Younger, S. D. (2006) · The Economic Journal · doi:10.1111/j.1468-0297.2006.01118.x · Cited by 466
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Metadata
- Authors
- Davidson, R., & Duclos, J.-Y.
- Venue
- Econometrica
- Publisher
- The Econometric Society
- Published
- 2000-11
- Volume
- 68
- Issue
- 6
- Pages
- 1435-1464
- ISSN
- 0012-9682 (ISSN-L)
- 1468-0262
- OpenAlex
- W2744732866
- Cited by
- 870
- References
- 1
- FWCI
- 69.89
- Type
- journal article
- Language
- en
- Open access
- green
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