Scientific article
OA Policy
English

Welfare Rankings in the Presence of Contaminated Data

Published inEconometrica, vol. 70, no. 3, p. 1221-1233
Publication date2002
Abstract

Stochastic dominance criteria are commonly used to draw welfare-theoretic inferences about comparisons of income distribution as well as ranking probability distributions in the analysis of choice under uncertainty. However, just as some measures of location and dispersion can be catastrophically sensitive to extreme values in the data it is also possible that conclusions drawn from empirical implementations of dominance criteria are unduly influenced by data contamination. We show the conditions under which this may occur for a number of standard dominance tools used in welfare analysis.

Keywords
  • Welfare dominance
  • Lorenz curve
  • Robustness
Citation (ISO format)
COWELL, Frank, VICTORIA-FESER, Maria-Pia. Welfare Rankings in the Presence of Contaminated Data. In: Econometrica, 2002, vol. 70, n° 3, p. 1221–1233. doi: 10.1111/1468-0262.00324
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Article (Accepted version)
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Identifiers
Journal ISSN0012-9682
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