THE NORMATIVE SIGNIFICANCE OF USING 3RD-DEGREE STOCHASTIC-DOMINANCE IN COMPARING INCOME DISTRIBUTIONS
成果类型：
Note
署名作者：
DAVIES, J; HOY, M
署名单位：
University of Guelph; University of Southampton
刊物名称：
JOURNAL OF ECONOMIC THEORY
ISSN/ISSBN：
0022-0531
DOI：
10.1006/jeth.1994.1080
发表日期：
1994
页码：
520-530
关键词：
摘要：
Third-degree stochastic dominance (TSD) has been promoted as a normative criterion to refine the partial ordering over income distributions induced by second-degree stochastic dominance (i.e., the Lorenz criterion). This paper enhances our understanding of the normative properties of TSD. By defining a ''Rawlsian composite transfer'' to be a progressive transfer combined with a regressive transfer, with the former taking place in a lower income region, we show how TSD is a ''Rawlsian extension'' of the Lorenz criterion. We also show how this property is affected by changes in the original vector of incomes. (C) 1994 Academic Press, Inc.