Lorenz map, inequality ordering and curves based on multidimensional rearrangements

Fuente: arXiv
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Main Authors: Fan, Yanqin, Henry, Marc, Pass, Brendan, Rivero, Jorge A.
Format: Preprint
Published: 2022
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author Fan, Yanqin
Henry, Marc
Pass, Brendan
Rivero, Jorge A.
author_facet Fan, Yanqin
Henry, Marc
Pass, Brendan
Rivero, Jorge A.
contents We propose a multivariate extension of the Lorenz curve based on multivariate rearrangements of optimal transport theory. We define a vector Lorenz map as the integral of the vector quantile map associated with a multivariate resource allocation. Each component of the Lorenz map is the cumulative share of each resource, as in the traditional univariate case. The pointwise ordering of such Lorenz maps defines a new multivariate majorization order, which is equivalent to preference by any social planner with inequality averse multivariate rank dependent social evaluation functional. We define a family of multi-attribute Gini index and complete ordering based on the Lorenz map. We propose the level sets of an Inverse Lorenz Function as a practical tool to visualize and compare inequality in two dimensions, and apply it to income-wealth inequality in the United States between 1989 and 2022.
format Preprint
id arxiv_https___arxiv_org_abs_2203_09000
institution arXiv
publishDate 2022
record_format arxiv
spellingShingle Lorenz map, inequality ordering and curves based on multidimensional rearrangements
Fan, Yanqin
Henry, Marc
Pass, Brendan
Rivero, Jorge A.
Econometrics
Methodology
We propose a multivariate extension of the Lorenz curve based on multivariate rearrangements of optimal transport theory. We define a vector Lorenz map as the integral of the vector quantile map associated with a multivariate resource allocation. Each component of the Lorenz map is the cumulative share of each resource, as in the traditional univariate case. The pointwise ordering of such Lorenz maps defines a new multivariate majorization order, which is equivalent to preference by any social planner with inequality averse multivariate rank dependent social evaluation functional. We define a family of multi-attribute Gini index and complete ordering based on the Lorenz map. We propose the level sets of an Inverse Lorenz Function as a practical tool to visualize and compare inequality in two dimensions, and apply it to income-wealth inequality in the United States between 1989 and 2022.
title Lorenz map, inequality ordering and curves based on multidimensional rearrangements
topic Econometrics
Methodology
url https://arxiv.org/abs/2203.09000