ineq treats its input as an additive variable (that is, it is assumed that totals make sense and that no negative values are present in the data specified) and calculates three measures of inequality. Given n values of y, scale to proportions p = y / SUM y. Then Simpson's index is SUM p^2. Shannon entropy is -SUM p ln p = SUM p ln 1/p. The dissimilarity index is (1 / 2) SUM | p - 1 / n |. These measures are known under a variety of names, and a variety of related guises, in different fields.
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Software component provided by Boston College Department of Economics in its series Statistical Software Components with number
S365801.
Size: Programming language: Stata Requires: Stata version 5.0 Date of creation: 08 Jan 1999 Date of revision: Handle: RePEc:boc:bocode:s365801
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