The Journal of Economic Inequality

, Volume 7, Issue 2, pp 179–187 | Cite as

Inequality in the relative differential sense with continuous distributions

  • Zhengli Gu
  • Paul Madden


Existing literature has studied the relative differential inequality (RDI) concept as an inequality comparison for discrete distributions, where RDI dominance occurs if there is Lorenz dominance between the distributions for all subsets of individuals of corresponding rank. The paper investigates RDI in the context of continuous distributions, providing continuous counterparts to existing discrete results, and others, including discussion of the uniform, Pareto and log-normal families of continuous distributions. The usefulness of RDI for comparative static analysis in theoretical economic models based on continuous distributions is indicated.


Lorenz inequality Relative differential inequality 

JEL Classification

D31 D63 


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Copyright information

© Springer Science+Business Media, LLC. 2007

Authors and Affiliations

  1. 1.Business Management DepartmentChina Continent Property and Casualty Insurance Company, LtdShanghaiPeople’s Republic of China
  2. 2.School of Social SciencesUniversity of ManchesterManchesterUK

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