Increasing concave orderings of linear combinations of order statistics with applications to social welfare

DOI10.1007/S00184-019-00754-1MaRDI QIDQ2189761zbMATH OpenOpenAlexWikidataFDO

Authors A. Castaño-Martínez, Gema Pigueiras, Georgios Psarrakos, Miguel A. Sordo

Publication date 16 June 2020

Published in Metrika (Search for Journal in Brave)

Full work available at URL https://doi.org/10.1007/s00184-019-00754-1

zbMATH Keywords

generalized Lorenz orderincreasing concave orderorder statisticswelfare measurement

Mathematics Subject Classification ID

Order statistics; empirical distribution functions (62G30) Applications of statistics to social sciences (62P25)

Review text

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.

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Cited in

(3)

• Some classes of functions that preserve the inequality and welfare orderings of income distributions
• How a probabilistic analogue of the mean value theorem yields stein-type covariance identities
• Some stochastic comparisons of lower records and lower record spacings

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