Restricted Inequality and Relative Poverty

This paper develops criteria for a new concept of restricted inequality dominance and show how they relate to criteria for comparing relative poverty. The results warn against the use of some popular indices of inequality.\ They do, however, suggest an interesting extension of the Schutz coefficient as well as a use of Lorenz curves for the analysis of relative poverty and restricted inequality. We also illustrate graphically how the new criteria of restricted inequality dominance extend the ranking power of previously proposed inequality dominance criteria.