Multidimensional inequality comparisons: a compensation perspective (Q435905)

This paper deals with stochastic dominance theorems. The main result consists of two sufficient second-order stochastic dominance conditions. In the case where the compensated variable has a discrete distribution of the compensating variable must satisfy a condition which degenerates to the sequential generalized Lorenz test for identical marginal distributions of the compensated variable. Furthermore, the distributions of the compensated variable must satisfy the generalized Lorenz test.