Posted: 21 Feb 2008
Date Written: January 1996
The economic analysis of income distribution and related topics makes extensive use of dominance criteria to draw inferences about welfare comparisons. However it is possible that - just as some inequality statistics can be very sensitive to extreme values - conclusions drawn from empirical implementations of dominance criteria may also be influenced by data contamination. We show the conditions under which this may occur and propose empirical methods to work round the problem.
Suggested Citation: Suggested Citation
Cowell, Frank and Victoria-Feser, Maria-Pia, Welfare Judgements in the Presence Contaminated Data (January 1996). LSE STICERD Research Paper No. 13. Available at SSRN: https://ssrn.com/abstract=1094738