Résumé
We investigate the third-degree stochastic dominance order, which is receiving increasing attention in the field of inequality measurement. Observing that this partial order fails to satisfy the von Neumann--Morgenstern independence property in the space of random variables, we introduce the concepts of strong and local third-degree stochastic dominance, which do not suffer from this deficiency. We motivate these two new binary relations and characterize them in the spirit of the Lorenz characterization of the second-degree stochastic order, comparing our findings with the closest results in inequality literature.
langue originale | Anglais |
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Pages (de - à) | 249-268 |
Nombre de pages | 20 |
journal | Journal of Economic Inequality |
Volume | 7 |
Numéro de publication | 3 |
Les DOIs | |
état | Publié - 2009 |
Modification externe | Oui |