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A comparison of inequality measurement techniques

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Abstract

There are numerous statistical techniques designed for the measurement of inequality. Each individual index has a unique set of properties which can make the choice of an appropriate measure difficult. This paper reviews the desirable properties for inequality indices to exhibit and proposes an additional characteristic that an effective measure may satisfy. Existing inequality measures are assessed against these criteria and a new technique that satisfies all desirable properties is proposed. An empirical demonstration of the proposed measure is provided.

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  • Nicholas Rohde, 2008. "A comparison of inequality measurement techniques," Discussion Papers Series 377, School of Economics, University of Queensland, Australia.
    • Handle: RePEc:qld:uq2004:377
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    File URL: https://economics.uq.edu.au/files/44662/377.pdf
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    1. Cowell, Frank A. & Kuga, Kiyoshi, 1981. "Additivity and the entropy concept: An axiomatic approach to inequality measurement," Journal of Economic Theory, Elsevier, vol. 25(1), pages 131-143, August.
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    8. Bourguignon, Francois, 1979. "Decomposable Income Inequality Measures," Econometrica, Econometric Society, vol. 47(4), pages 901-920, July.
    9. Cowell, Frank, 2006. "Inequality: measurement," LSE Research Online Documents on Economics 2686, London School of Economics and Political Science, LSE Library.
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    Cited by:

    1. David Warner & Prasada Rao & William E. Griffiths & Duangkamon Chotikapanich, 2011. "Global Inequality: Levels and Trends, 1993-2005," Discussion Papers Series 436, School of Economics, University of Queensland, Australia.
    2. Ayako Saiki & Jon Frost, 2014. "How does unconventional monetary policy affect inequality? Evidence from Japan," DNB Working Papers 423, Netherlands Central Bank, Research Department.

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