Testing for multisample generalized Lorenz curves dominance

Abstract

The generalized Lorenz curve is simply the ordinary Lorenz curve scaled up by the mean and its scaling reveals a dominance relationship that is not apparent from an examination of means and Lorenz curve on their own. Second order stochastic dominance is equivalent to generalized Lorenz dominance as well and discussed in past. [1] proposed test for generalized Lorenz dominance over a specified interval of interest. However, no test has been discussed for testing multisample generalized Lorenz dominance. We propose a test for testing multisample generalized Lorenz dominance using two different approaches viz. specified interval approach and confidence interval approach. The simulation study is also carried out to find the power of the proposed test.