We decompose the Lorenz curve (LC) and its associated concentration curve (CC) by population subgroups. To illustrate these decompositions, we examine changes in earnings inequality among West Germans, East Germans, and foreign guest workers during the recent German unification. We show that...

We use the Interdistributional Lorenz Curves (ILCs) of Butler and McDonald (1987) to visualize convergence or divergence between income distributions. To illustrate the idea, we compare income distributions from Spain, Italy, and Germany. We also offer methods to test for significant differences...

We gauge the impact of the Great Recession on racial and ethnic subgroups by applying a stochastic dominance method proposed by Le Breton, et al. (2012).  The method generates a partial discrimination ordering – or alternatively, a measure of the economic advantage for one subgroup...

Conditional information ratios (CIR) measure lower partial performance of a portfolio conditional to the distribution of returns on the benchmark. The Information Curve plotted by a serial CIR provides an overall view of performance especially under downside scenarios. The CIR approach is...

To solve the dependency problem between factors, in the context of linear multi-factor models, this study proposes an optimal procedure to find orthogonalized risk premia, which also facilitates the decomposition of the coefficient of determination. Importantly, the new risk premia may diverge...