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Lorenz map, inequality ordering and curves based on multidimensional rearrangements

Yanqin Fan, Marc Henry, Brendan Pass, Jorge A. Rivero

arXiv 17 Mar 2022 · Econometrics · 1 citations (OpenAlex)

arXiv:2203.09000 · PDF · DOI · OpenAlex · Extracted main text

Abstract

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.

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81
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178
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Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1G. Koshevoy and K. Mosler (1996) The Lorenz zonoid of a multivariate distribution1.000133100%
2J. L. Gastwirth (1971) A general definition of the Lorenz curve1.00093100%
3B. C. Arnold (1983) Pareto Distributions1.00083100%
4B. C. Arnold and J. M. Sarabia (2018) Majorization and the Lorenz order with Applications in Applied Mathematics and Economics0.92843100%
5V. Chernozhukov, A. Galichon, M. Hallin, and M. Henry (2017) Monge-Kantorovich depth, quantiles, ranks and signs0.9098575%
6T. Taguchi (1972) On the two-dimensional concentration surface and extensions of concentration coefficient and Pareto distribution to the two-dime…0.874102100%
7A. Galichon and M. Henry (2012) Dual theory of choice under multivariate risks0.8746367%
8T. Taguchi (1972) On the two-dimensional concentration surface and extensions of concentration coefficient and Pareto distribution to the two-dime…0.87452100%
9A. Banerjee (2016) Multidimensional Lorenz dominance: A definition and an example0.81142100%
10A. W. Marshall, I. Olkin, and B. C. Arnold (2011) Inequalities: Theory of Majorization and Its Applications0.81142100%

Showing the top 10 of 81 scored citations.

Cited by, within the corpus

arXiv econ.EM papers that cite this one, ranked by how heavily they lean on it.

Citing paperIntensityMentionsSections
1An econometrician's guide to optimal transport0.69351