Discussion Papers of Business and Economics
Department of Business and Economics, University of Southern Denmark
Decomposing bivariate dominance for social welfare comparisons
(), Troels Martin Range
(), Peter Sudhölter
() and Lars Peter Østerdal
Abstract: The lower orthant dominance relation is frequently used
for multidimensional social welfare comparisons. Recently it has been shown
that bivariate dominance can be characterized in terms of elementary mass
transfer operations. We provide an algorithm which explicitly decomposes
the mass transfers into welfare differences and inequality differences.
Keywords: Social welfare; lower orthant dominance; first order dominance; algorithm; (follow links to similar papers)
JEL-Codes: C63; D63; I31; (follow links to similar papers)
14 pages, June 30, 2015
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