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Socio-economic inequality: Relationship between Gini and Kolkata indices

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  • Chatterjee, Arnab
  • Ghosh, Asim
  • Chakrabarti, Bikas K.

Abstract

Socio-economic inequality is characterized from data using various indices. The Gini (g) index, giving the overall inequality is the most common one, while the recently introduced Kolkata (k) index gives a measure of 1−k fraction of population who possess top k fraction of wealth in the society. Here, we show the relationship between the two indices, using both empirical data and analytical estimates. The significance of their relationship has been discussed.

Suggested Citation

  • Chatterjee, Arnab & Ghosh, Asim & Chakrabarti, Bikas K., 2017. "Socio-economic inequality: Relationship between Gini and Kolkata indices," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 466(C), pages 583-595.
    • Handle: RePEc:eee:phsmap:v:466:y:2017:i:c:p:583-595
    DOI: 10.1016/j.physa.2016.09.027
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    References listed on IDEAS

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    5. Sreenivasan Subramanian, 2019. "Further tricks with the Lorenz curve," Economics Bulletin, AccessEcon, vol. 39(3), pages 1677-1686.
    6. Suchismita Banerjee & Bikas K. Chakrabarti & Manipushpak Mitra & Suresh Mutuswami, 2020. "Inequality Measures: The Kolkata index in comparison with other measures," Papers 2005.08762, arXiv.org, revised Oct 2020.
    7. Cui, Lijie & Lin, Chuandong, 2021. "A simple and efficient kinetic model for wealth distribution with saving propensity effect: Based on lattice gas automaton," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 561(C).
    8. Manna, S.S. & Biswas, Soumyajyoti & Chakrabarti, Bikas K., 2022. "Near universal values of social inequality indices in self-organized critical models," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 596(C).
    9. Masato Okamoto, 2022. "Level-adjusted S-Gini index and its complementary index as a pair of sensitivity-adjustable inequality measures," Economics Bulletin, AccessEcon, vol. 42(1), pages 1-16.

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