Transformations and Lorenz Curves: Sufficient and Necessary Conditions

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Abstract

In this study, we reconsider the effect of variable transformations on income inequality. Under the assumption that the theorems should hold for all income distributions, earlier given sufficient conditions are also necessary. Different versions of the conditions are compared. Furthermore, one can prove that the assumption of continuity of the transformations can be implicitly included in the necessary and sufficient conditions, and hence, it can be dropped from the assumptions. The effects of two transformations on income inequality are compared.
Original languageEnglish
Peer-reviewed scientific journalTheoretical Economics Letters
Volume6
Issue number3
Pages (from-to)442-449
Number of pages8
ISSN2162-2078
DOIs
Publication statusPublished - 06.2016
MoE publication typeA1 Journal article - refereed

Keywords

  • 112 Statistics and probability
  • Discontinuity
  • Income Distribution
  • Income Inequality
  • Lorenz Dominance
  • Tax Policy
  • Transfer Policy

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