Abstract
Income share elasticity is a function π which can describe the size distribution of income (Esteban in Intern Econ Rev 27:439–444, 1986). On the other hand, the conventional density representation of the latter gives parameters of first or second order stochastic dominance (SD), widely used to describe shifts in income distribution, to which inequality measures are attached. The paper draws a link between the two, by providing conditions such that a given shift to π is equivalent to a first or second order SD shift of the distribution of income. Some applications to Lorenz rankings are also provided.
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Benassi, C., Chirco, A. Income Share Elasticity and Stochastic Dominance. Soc Choice Welfare 26, 511–525 (2006). https://doi.org/10.1007/s00355-006-0089-z
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DOI: https://doi.org/10.1007/s00355-006-0089-z