Testing for Generalized Lorenz Dominance
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The Generalized Lorenz dominance can be used to take account of differences in mean income as well as income inequality in case of two income distributions possessing unequal means. Asymptotically distribution-free and consistent tests have been proposed for comparing two generalized Lorenz curves in the whole interval [p 1, p 2] where 0 < p 1 < p 2 < 1. Size and power of the test has been derived.
KeywordsLorenz curve Generalized Asymptotic distribution Distribution free Power
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