Measuring inequality with ordinal data: a note

Abstract

This note formally investigates the applicability of stochastic dominance (Lorenz dominance) to ordinal data such as self-reported health status. We confirm that for ordinal data distributions, stochastic dominance has limited applicability in ranking social welfare, while it has no applicability in ranking inequality.

Citation

Zheng, B. (2008), "Measuring inequality with ordinal data: a note", Bishop, J. and Zheng, B. (Ed.) Inequality and Opportunity: Papers from the Second ECINEQ Society Meeting (Research on Economic Inequality, Vol. 16), Emerald Group Publishing Limited, Leeds, pp. 177-188. https://doi.org/10.1016/S1049-2585(08)16008-2