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Robust ordinal inequality comparisons with Kolm-independent measures

Working Paper 2016-401

Abstract

Lv, Wang, and Xu (2015) recently characterized a new class of ordinal inequality measures axiomatically. In addition to their appealing functional forms, these measures are the only ones in the literature satisfying a property of independence, inspired by Kolm (1976). As acknowledged by the authors, the robustness of ordinal inequality comparisons to the several alternative suitable measures within the class is a natural concern. This note derives the stochastic dominance condition whose fulfilment guarantees that all inequality measures within the class rank a pair of distributions consistently.

Authors: Gaston Yalonetzky.

Keywords: Stochastic dominance, Ordinal inequality.
JEL: D30, I14.