This note suggests a bridge between stochastic dominance (Rothschild and Stiglitz, 1970 , 1973), inequality measurement (Atkinson, 1970) and discrimination measurement (Gastwirth, 1975). Discrimination orderings are defined and illustrated through discrimination curves, in the same spirit as stochastic dominance analysis. The main result, which links the second order discrimination curve and the Gastwirth discrimination index, also generalizes the equivalence between Generalized Lorenz dominance and second order stochastic dominance.
A Stochastic Dominance Approach to the Measurement of Discrimination.
PELUSO, Eugenio
2012-01-01
Abstract
This note suggests a bridge between stochastic dominance (Rothschild and Stiglitz, 1970 , 1973), inequality measurement (Atkinson, 1970) and discrimination measurement (Gastwirth, 1975). Discrimination orderings are defined and illustrated through discrimination curves, in the same spirit as stochastic dominance analysis. The main result, which links the second order discrimination curve and the Gastwirth discrimination index, also generalizes the equivalence between Generalized Lorenz dominance and second order stochastic dominance.
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