Measuring and explaining economic inequality: An extension of the Gini coefficient.

Chameni Nembua, Célestin (2008): Measuring and explaining economic inequality: An extension of the Gini coefficient.

Abstract

This paper proposes a new class of inequality indices based on the Gini’s coefficient. The properties of the indices are studied and in particular they are found to be regular, relative and satisfy the Pigou-Dalton transfer principle. A subgroup decomposition is performed and the method is found to be similar to the one used by Dagum when decomposing the Gini index. The theoretical results are illustrated by case studies, using Cameroonian data.

• Item Type: MPRA Paper
• Language: English
• Keywords: Measuring inequality; Generalisation of the Gini index; Pigou-Dalton’s transfer; Subgroup decomposition.
• Subjects: D - Microeconomics > D3 - Distribution > D31 - Personal Income, Wealth, and Their Distributions; C - Mathematical and Quantitative Methods > C4 - Econometric and Statistical Methods: Special Topics > C43 - Index Numbers and Aggregation; D - Microeconomics > D6 - Welfare Economics > D63 - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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