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Transformations of Stochastic Orderings

  • Patrick Moyes
  • Anthony Shorrocks

Abstract

Incomplete orderings of distributions are nowadays used routinely in the analysis of uncertainty, inequality, welfare and poverty. The popularity of these orderings - of which stochastic dominance and Lorenz dominance are the best known examples - is due to the fact that they distinguish those distributional rankings which are widely accepted from those which depend on personal value judgements, and are therefore less clear cut. In this respect, the use of incomplete orderings may be viewed as an attempt to mark the boundary between positive and normative economics.

Keywords

Income Distribution Discrete Distribution Stochastic Dominance Lorenz Curve Stochastic Order 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer-Verlag Berlin · Heidelberg 1994

Authors and Affiliations

  • Patrick Moyes
    • 1
  • Anthony Shorrocks
    • 2
  1. 1.CNRS and LARE Université de Bordeaux IPessacFrance
  2. 2.Department of EconomicsUniversity of EssexColchesterUK

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