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Intersecting generalized Lorenz curves and the Gini index

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Author Info
Claudio Zoli (Department of Economics, University of Bologna, Bologna, Italy)

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Abstract

As is well known, the use of the Gini coefficient in comparisons is inconsistent with an utilitarian approach. This paper analyzes the Gini coefficient's normative significance in welfare comparisons evaluating income distributions according to Yaari dual social welfare function. When generalized Lorenz curves cross once, the Gini coefficient is decisive in determining welfare rankings if we strengthen the Principle of Transfers applying a Positional version of the Principle of Transfer Sensitivity. This result can also be extended to the case of multiple crossings.

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Publisher Info
Article provided by Springer in its journal Social Choice and Welfare.

Volume (Year): 16 (1999)
Issue (Month): 2 ()
Pages: 183-196
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Handle: RePEc:spr:sochwe:v:16:y:1999:i:2:p:183-196

Note: Received: 28 August 1996 / Accepted: 22 October 1997
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  2. Paul Makdissi & Stéphane Mussard, 2006. "Decomposition of s - Concentration Curves," Cahiers de recherche 0641, CIRPEE. [Downloadable!]
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  3. Jean-Yves Duclos & Vincent Jalbert & Abdelkrim Araar, 2001. "Classical Horizontal Inequity and Reranking: an Integrated Approach," UFAE and IAE Working Papers 478.01, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC). [Downloadable!]
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  4. Rolf Aaberge, 2009. "Ranking intersecting Lorenz curves," Social Choice and Welfare, Springer, vol. 33(2), pages 235-259, August. [Downloadable!] (restricted)
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  5. Duclos, Jean-Yves & Jalbert, Vincent & Araar, Abdelkrim, 2003. "Classical Horizontal Inequity and Reranking: an Integrating Approach," Cahiers de recherche 0306, CIRPEE. [Downloadable!]
  6. Alain Chateauneuf & Thibault Gajdos & Pierre-Henry Wilthien, 2002. "The Principle of Strong Diminishing Transfer," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00085936_v1, HAL. [Downloadable!]
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  7. Rolf Aaberge, 2007. "Gini’s nuclear family," Journal of Economic Inequality, Springer, vol. 5(3), pages 305-322, December. [Downloadable!] (restricted)
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  8. Satya Chakravarty, 2007. "A deprivation-based axiomatic characterization of the absolute Bonferroni index of inequality," Journal of Economic Inequality, Springer, vol. 5(3), pages 339-351, December. [Downloadable!] (restricted)
  9. Fabio Maccheroni & Pietro Muliere & Claudio Zoli, 2005. "Inverse stochastic orders and generalized Gini functionals," Metron - International Journal of Statistics, Dipartimento di Statistica, Probabilità e Statistiche Applicate - University of Rome, vol. 0(3), pages 529-559. [Downloadable!]
  10. Paul Makdissi & Jean-Yves Duclos, 2001. "Restricted Inequality and Relative Poverty," Cahiers de recherche 01-06, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke. [Downloadable!]
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  11. Rolf Aaberge, . "Mean-Spread-Preserving Transformations," Discussion Papers 360, Research Department of Statistics Norway. [Downloadable!]
  12. Peter Lambert & Giuseppe Lanza, 2006. "The effect on inequality of changing one or two incomes," Journal of Economic Inequality, Springer, vol. 4(3), pages 253-277, December. [Downloadable!] (restricted)
  13. Rolf Aaberge & Steinar Bjerve & Kjell Doksum, 2006. "Modeling inequality and spread in multiple regression," Quantitative Finance Papers math/0610852, arXiv.org. [Downloadable!]
  14. Ville, Simon & Valadkhani, Abbas & O'Brien, Martin, 2005. "The Distribution of Research Performance Across Australian Universities, 1992-2003, and Its Implications for Higher Education Funding Models," Economics Working Papers wp05-26, School of Economics, University of Wollongong, NSW, Australia. [Downloadable!]
  15. Claudio Zoli, 2002. "Inverse stochastic dominance, inequality measurement and Gini indices," Journal of Economics, Springer, vol. 9(1), pages 119-161, December. [Downloadable!] (restricted)
  16. Jean-Yves Duclos & Paul Makdissi & Quentin Wodon, 2004. "Socially-Improving Tax Reforms," Cahiers de recherche 0401, CIRPEE. [Downloadable!]
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  17. Thibault Gajdos, 2004. "Single Crossing Lorenz Curves and Inequality Comparisons," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00086028_v1, HAL. [Downloadable!]
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  18. Thibault Gajdos, 2002. "Measuring Inequalities without Linearity in Envy Through Choquet Integral with Symmetric Capacities," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00085888_v1, HAL. [Downloadable!]
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