AN ANALYSIS OF INCOME DISTRIBUTION BETWEEN REGIONS FOR TURKEY

Purpose- In this study, by using second order stochastic dominance criteria which is a new criterion compared to classical approaches, it is aimed to compare the distributions of the regions with different income levels in Turkey. Methodology- Second order stochastic dominance (SSD) criteria provides comparison between the regions in terms of their income distribution based on Gini coefficient. Findings- By using annualy equivalised household disposable income data from Turkish Statistical Institute (TU？K), between 2006-2016 years, binary comparisons were made among the regions (NUTS-1) and it has been shown that certain regions dominate the some others in terms of income distribution in the period covered in the study. Also via same approach we observed that certain years are more effective in terms of Gini coefficient than other years. Conclusion- SSD criteria is a measure that can be used in income distribution analysis. Therefore, in this study we tried to show that the SSD criteria provides more information than the Lorenz curve