A nice estimation of Gini index and power Pen's parade
AbstractUnder the assumption that an economic variable y such as income, is a power function of its rank among n individuals, we provide the coefficient of variation and the Gini index as functions of the power degree of the Pen's parade. In fact, knowing the power degree of the Pen's parade function, we obtain the coefficient of variation and a sharp analytical simple way to compute Gini index in terms of the power degree. Reciprocally, knowing, the coefficient of variation of a said variable, we can also provide the power degree of the corresponding Pen's parade, hence deducting its shape. Several examples are given to illustrate our methods. Special attention is given to countries' Gini indices of the World development indicators report 2009 (WDI 2009).
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Bibliographic InfoArticle provided by Elsevier in its journal Economic Modelling.
Volume (Year): 29 (2012)
Issue (Month): 4 ()
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Web page: http://www.elsevier.com/locate/inca/30411
Applied econometrics; Development economics; Gini index; Income inequality; Pen's parade; World development indicators;
Find related papers by JEL classification:
- C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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"Quadratic Pen'S Parade And The Computation Of The Gini Index,"
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- Stéphane Mussard & Jules Sadefo Kamdem & Françoise Seyte & Michel Terraza, 2010. "Quadratic Pen's Parade and the Computation of the Gini index," Cahiers de recherche 10-18, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke.
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- Shalit, Haim & Yitzhaki, Shlomo, 1984. " Mean-Gini, Portfolio Theory, and the Pricing of Risky Assets," Journal of Finance, American Finance Association, vol. 39(5), pages 1449-68, December.
- World Bank, 2009. "World Development Indicators 2009," World Bank Publications, The World Bank, number 4367, August.
- Lerman, Robert I. & Yitzhaki, Shlomo, 1984. "A note on the calculation and interpretation of the Gini index," Economics Letters, Elsevier, vol. 15(3-4), pages 363-368.
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