Distributional Dominance with Trimmed Data
11 Pages Posted: 12 Feb 2011
Date Written: August 12, 2004
Distributional dominance criteria are commonly applied to draw welfare inferences about comparisons, but conclusions drawn from empirical implementations of dominance criteria may be influenced by data contamination.We examine a nonparametric approach to refining Lorenz-type comparisons and apply the technique to two important examples from the Luxembourg Income Study database.
Keywords: Distributional dominance, Lorenz curve, Robustness
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