Increasing concave orderings of linear combinations of order statistics with applications to social welfare (Q2189761): Difference between revisions

The paper presents a theoretical study using order statistics applied to weighted average income random variables. The authors use the generalized Lorenz curve to induce partial ordering between random income variables, and propose that the area under the generalized Bonferroni curve, given by \(GB_X(p) = \frac{GL_X(p)}{p}\), with \( p \in (0;1] \) and \(GB_X (0) = 0\) and \(GL_X\) being the generalized Lorenz curve, can be used as a measure of economic social welfare. They use two linear combinations of order statistics and prove some results regarding the increasing concave order to provide sufficient conditions for income comparison.