Okamoto, Masato (2012): The Relationship between the Equivalence Scale and the Inequality Index and Its Impact on the Measurement of Income Inequality.
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The paper discusses the ∪-shaped relationship between the equivalence scale n^ε and the Gini index instead of considering the equivalence scale’s relationship to the generalised entropy measures, which was studied by Coulter, et al. (1992). An end-point condition is given for the ∪-shaped relationship, which corresponds to a condition for that of the generalised entropy measures. Additionally, using a mixture of log-normal distributions approach, five factors are shown to be required for a convex relationship between size elasticity and the Gini index. Empirically, income distributions satisfy those factors. Thus, the end-point condition essentially determines the shape of the relationship.
|Item Type:||MPRA Paper|
|Original Title:||The Relationship between the Equivalence Scale and the Inequality Index and Its Impact on the Measurement of Income Inequality|
|Keywords:||inequality; income distribution; equivalence scale|
|Subjects:||D - Microeconomics > D6 - Welfare Economics > D63 - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
D - Microeconomics > D3 - Distribution > D31 - Personal Income, Wealth, and Their Distributions
|Depositing User:||Masato Okamoto|
|Date Deposited:||17. Mar 2012 12:37|
|Last Modified:||09. Sep 2015 22:44|
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