English

Lorenz map, inequality ordering and curves based on multidimensional rearrangements

Econometrics 2024-04-17 v4 Methodology

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.

Cite

@article{arxiv.2203.09000,
  title  = {Lorenz map, inequality ordering and curves based on multidimensional rearrangements},
  author = {Yanqin Fan and Marc Henry and Brendan Pass and Jorge A. Rivero},
  journal= {arXiv preprint arXiv:2203.09000},
  year   = {2024}
}
R2 v1 2026-06-24T10:16:28.335Z