Reference distributions and inequality measurement
AbstractWe investigate a general problem of comparing pairs of distributions which includes approaches to inequality measurement, the evaluation of “unfair” income inequality, evaluation of inequality relative to norm incomes, and goodness of fit. We show how to represent the generic problem simply using (1) a class of divergence measures derived from a parsimonious set of axioms and (2) alternative types of “reference distributions.” The problems of appropriate statistical implementation are discussed and empirical illustrations of the technique are provided using a variety of reference distributions. Copyright Springer Science+Business Media New York 2013
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Bibliographic InfoArticle provided by Springer in its journal The Journal of Economic Inequality.
Volume (Year): 11 (2013)
Issue (Month): 4 (December)
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Web page: http://springerlink.metapress.com/link.asp?id=111137
Divergence measures; Generalised entropy measures; Income distribution; Inequality measurement; D63; C10;
Find related papers by JEL classification:
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
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