lorenzdominance {ClaimsProblems} | R Documentation |
Lorenz-dominance relation
Description
This function checks whether or not the awards assigned by two rules to a claims problem are Lorenz-comparable.
Usage
lorenzdominance(E, d, Rules, Info = FALSE)
Arguments
E |
The endowment. |
d |
The vector of claims. |
Rules |
The two rules: AA, APRO, CE, CEA, CEL, DT, MO, PIN, PRO, RA, Talmud. |
Info |
A logical value. |
Details
Let E\ge 0
be the endowment to be divided and d\in \mathcal{R}^n
the vector of claims
with d\ge 0
and such that \sum_{i=1}^{n} d_i\ge E,\;
the sum of claims exceeds the endowment.
A vector x=(x_1,\dots,x_n)
is an awards vector for the claims problem (E,d)
if 0\le x \le d
and satisfies the balance requirement, that is, \sum_{i=1}^{n}x_i=E
the sum of its coordinates is equal to E
.
Let X(E,d)
be the set of awards vectors for (E,d)
.
Given a claims problem (E,d)
, in order to compare a pair of awards vectors x,y\in X(E,d)
with the Lorenz criterion,
first one has to rearrange the coordinates of each allocation in a non-decreasing order. Then we say that x
Lorenz-dominates y
(or, that y
is Lorenz-dominated by x
)
if all the cumulative sums of the rearranged coordinates are greater with x
than with y
. That is,
x
Lorenz-dominates y
if for each k=1,\dots,n-1
we have that
\sum_{j=1}^{k}x_j \geq \sum_{j=1}^{k}y_j
Let R
and R'
be two rules. We say that R
Lorenz-dominates R'
if R(E,d)
Lorenz-dominates R'(E,d)
for all (E,d)
.
Value
If Info = FALSE, the Lorenz-dominance relation between the awards vectors selected by both rules. If both awards vectors are equal then cod = 2. If the awards vectors are not Lorenz-comparable then cod = 0. If the awards vector selected by the first rule Lorenz-dominates the awards vector selected by the second rule then cod = 1; otherwise cod = -1. If Info = TRUE, it also gives the corresponding cumulative sums.
References
Lorenz, M. O. (1905). Methods of measuring the concentration of wealth. Publications of the American statistical association, 9(70), 209-219.
Mirás Calvo, M.Á., Núñez Lugilde, I., Quinteiro Sandomingo, C., and Sánchez Rodríguez, E. (2022). Deviation from proportionality and Lorenz-domination for claims problems. Rev Econ Design. doi: 10.1007/s10058-022-00300-y
Mirás Calvo, M.Á., Núñez Lugilde, I., Quinteiro Sandomingo, C., and Sánchez-Rodríguez, E. (2021). The adjusted proportional and the minimal overlap rules restricted to the lower-half, higher-half, and middle domains. Working paper 2021-02, ECOBAS.
See Also
cumawardscurve, deviationindex, indexgpath, lorenzcurve, giniindex.
Examples
E=10
d=c(2,4,7,8)
Rules=c(AA,CEA)
lorenzdominance(E,d,Rules)