Distribution-free Test for Lorenz and Generalized Lorenz Dominance in Case of two Dependent Samples

The paper considers the problem of testing for Lorenz and Generalised Lorenz dominance in case of two dependent samples. The asymptotic distribution of Lorenz and Generalized Lorenz curve ordinates is derived and distributionfree tests for testing dominance are proposed. The power of the proposed test for Lorenz dominance for dependent data is computed using simulation from bivariate lognormal distribution and a real life illustration using data based on partial oxygen pressures in males for pre and post cycling periods is given. In case dependent Lorenz curves intersect, testing for Generalized Lorenz dominance is also given along with some real life illustration pertaining to before and after hormonal replacement therapy in females.