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Inequality and Negative Income

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Andreas Stich () (Seminar fuer Wirtschafts- und Sozialstatistik, Universitaet zu Koeln, Albertus-Magnus-Platz, 50923 Koeln, Germany)
Abstract

This paper deals with some problems in the measurement of inequality when negative incomes are allowed. A helpful axiom is defined, called the Greatest Gets More axiom. Using this axiom it can be shown that the properties of some inequality measures depend on whether there are negative incomes or not. In this paper for the intermediate measures of Eichhorn and the centrist measures of Kolm a threshold value is given above which the Greatest Gets More axiom holds. Furthermore, a simple proof is given for the fact that there exists no function which fulfills the three axioms Pigou-Dalton, homogeneity and additive invariance when the data contain negative incomes.

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Paper provided by Universitaet zu Koeln in its series Statistics and Econometrics with number 04/96.

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Date of creation: 1996
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Handle: RePEc:wop:koelse:9604

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  1. Kolm, Serge-Christophe, 1976. "Unequal inequalities. I," Journal of Economic Theory, Elsevier, vol. 12(3), pages 416-442, June. [Downloadable!] (restricted)
  2. Bossert, Walter & Pfingsten, Andreas, 1990. "Intermediate inequality: concepts, indices, and welfare implications," Mathematical Social Sciences, Elsevier, vol. 19(2), pages 117-134, April. [Downloadable!] (restricted)
  3. Kolm, Serge-Christophe, 1976. "Unequal inequalities. II," Journal of Economic Theory, Elsevier, vol. 13(1), pages 82-111, August. [Downloadable!] (restricted)
  4. Berrebi, Z M & Silber, Jacques, 1985. "The Gini Coefficient and Negative Income: A Comment," Oxford Economic Papers, Oxford University Press, vol. 37(3), pages 525-26, September. [Downloadable!] (restricted)
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  1. Nkonya, Ephraim & Phillip, Dayo & Mogues, Tewodaj & Pender, John & Yahaya, Muhammed Kuta & Adebowale, Gbenga & Arokoyo, Tunji & Kato, Edward, 2008. "From the ground up: Impacts of a pro-poor community-driven development project in Nigeria," IFPRI discussion papers 756, International Food Policy Research Institute (IFPRI). [Downloadable!]
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