Stochastic dominance in mobility analysis

Fields, Gary S.; Leary, Jesse; Ok, Efe A.

doi:10.1016/s0165-1765(02)00007-1

Cited by 34 publications

(17 citation statements)

References 4 publications

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“…Although as in most distributional questions, underlying this discussion is the struggle between normative connotations and positivist positions, the idea of directional income movements influencing the distribution is at the heart of these constructions (Fields, Leary, and Ok 2002). Discerning the net effect that directional mobility has is an intriguing question and has risen interest in public policy debates (Krugman 1992).…”

Section: Distribution Dynamicsmentioning

confidence: 99%

Space-time income distribution dynamics in Mexico

Gutiérrez

Rey

2013

Annals of GIS

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The uneven income distribution in Mexico has frequently being subject to both scrutiny and concern. This phenomenon seems to have a spatial counterpart much less explored and increasingly complex. This paper introduces a novel approach to analyse space-time integration of income distribution dynamics in Mexico. We draw on recent extensions in Exploratory Space-Time Data Analysis (ESTDA) and directional statistics, to investigate spatial dynamics and income movement patterns between Mexican states over 70 years. We use spatial randomization to test directional co-movements in spatially contiguous units as evidence of spatial dependence in income distribution dynamics. Strong evidence of spatial integration of income distribution dynamics is found along the study period. Our results suggest that, in many instances, states do not act independently and we identify a range of integrated movements. The lack of independence itself has important implications for income distributional outcomes as higher mobility will not necessarily imply mixing in the distribution, which is more likely to occur among neighbouring states within a similar income strata. This can be illustrated by the findings of two spatial, yet, contrasting effects: spatial integration in (low) top-down mobility, on the one hand, and negative spatial dependence on the other. While the latter is mostly explained by losses in states and distributional gains of the neighbours with income mixing (rank shifts among neighbouring states) within a group of states, the former phenomena obey a different spatial process where a state and neighbours move in the same direction in the distributional space. Altogether, our findings suggest the presence of slow spatial change in Mexico, mainly due to the presence of heterogeneous, spatially integrated dynamics influencing net change in income distributional outcomes.

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Section: Distribution Dynamicsmentioning

confidence: 99%

Space-time income distribution dynamics in Mexico

Gutiérrez

Rey

2013

Annals of GIS

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“…Fields et al[10] refer explicitly to stochastic dominance of a distribution of income changes over another, but they do not relate it to initial incomes.…”

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confidence: 99%

Non-anonymous growth incidence curves, income mobility and social welfare dominance

Bourguignon

2010

J Econ Inequal

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The distributional incidence of growth is generally analyzed by comparing the quantiles of the pre-and post-growth income distribution-e.g. the so-called Growth Incidence Curves. Such an approach based on an implicit re-ranking of individual incomes ignores income mobility by assuming that only post-growth income matters in social welfare. By contrast, this paper takes the view that "status quo matters" and that social welfare should logically be defined on both inital and terminal income. This leads to consider 'non-anonymous' Growth Incidence Curves that plot income growth rates against the various quantiles of the initial distribution. Dominance criteria that generalize those available for standard growth incidence curves are derived, which account for the inequality of individual income changes, conditional on initial income. An application to the cross-country distributional feature of global growth illustrates the analysis.

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“…Alternatively, one can look for stochastic dominance relationships between the distributions of individual growth rates, a suggestion formulated by Fields () and Fields et al . (). We illustrate this approach in the empirical application.…”

Section: Introductionmentioning

confidence: 97%

Inequality Adjusted Income Growth

Demuynck

gaer

2012

Economica

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We introduce and characterize a new measure of aggregate income growth that allows us to give more weight to individuals with lower individual income growth. Our measure includes several important measures of directional mobility encountered in the literature. The empirical application compares the measure of income growth between the USA and Germany, and finds that giving more weight to individuals with lower income growth reverses the ranking.

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Stochastic dominance in mobility analysis

Abstract: This paper introduces a technique for mobility dominance and compares the degree of earnings mobility of men in the USA from

Cited by 34 publications

References 4 publications

Space-time income distribution dynamics in Mexico

Space-time income distribution dynamics in Mexico

Non-anonymous growth incidence curves, income mobility and social welfare dominance

Inequality Adjusted Income Growth

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