A REVIEW OF STOCHASTIC DOMINANCE METHODS FOR POVERTY ANALYSIS
综述了随机占优方法在贫困分析中的应用,包括单维和多维情形,重点介绍一阶和二阶占优条件及其与贫困排序的关系,并概述了相关实证研究。
Abstract Stochastic dominance techniques have been mainly employed in poverty analyses to overcome what it is called the multiplicity of poverty indices problem. Moreover, in the multidimensional context, stochastic dominance techniques capture the possible relationships between the dimensions of poverty as they rely upon their joint distribution, unlike most multidimensional poverty indices, which are only based on marginal distributions. In this paper, we first review the general definition of unidimensional stochastic dominance and its relationship with poverty orderings. Then we focus on the conditions of multivariate stochastic dominance and their relationship with multidimensional poverty orderings, highlighting the additional difficulties that the multivariate setting involves. In both cases, we focus our discussion on first‐ and second‐order dominance, though some guidelines on higher order dominance are also mentioned. We also present an overview of some relevant empirical applications of these methods that can be found in the literature in both univariate and multivariate contexts.