Majorization in economic disparity measures

Abstract

This survey presents an account of univariate and multivariate majorization orderings and their characterization by various classes of economic disparity indices. First, a concise treatment of classical univariate results is given, including majorization with different means and different population sizes, as well as Lorenz orderings of relative and absolute disparity. Second, alternatives to the Pigou-Dalton principle of transfers are discussed which are based on transfers about a given threshold. Third, disparity in several attributes and multivariate majorization are investigated, and a multivariate version of the Lorenz curved is introduced. © 1994.