Koncepcja dominacji pierwszego i drugiego rzędu w analizie wzorca zmian w rozkładzie dochodu
First and second-order stochastic dominance in analyses of income growth pattern

Summary/Abstract: One of the main aspects of the analysis of changes in income distribution is an assessment of influence of these changes on the situation of different groups in the society, paying particular attention to the poor. Such analyses are aimed at answering the question about pattern of growth – and the answer may depend on the measure applied. Among many methods of the identification of growth pattern that are proposed in the literature, very popular are those, based on the idea of first and second-order stochastic dominance. Comparison of these two methods will be presented in the paper. The analysis will indicate differences in construction of both measures and will try to answer the question about influence of compensation – allowed by second-order dominance – on explicitness of results obtained. The empirical part of the paper is based on the data coming from Polish household budget survey for the period 1998-2008.

• Details
• Contents