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Inequality and negative income

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  • Stich, Andreas
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    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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    Bibliographic Info

    Paper provided by University of Cologne, Department for Economic and Social Statistics in its series Discussion Papers in Statistics and Econometrics with number 4/96.

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    Date of creation: 1996
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    Handle: RePEc:zbw:ucdpse:9604

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    Cited by:
    1. Nkonya, Ephraim M. & Phillip, Dayo & Mogues, Tewodaj & Pender, John L. & Kato, Edward, 2009. "Impacts Of Community-Driven Development Programs On Income And Asset Acquisition In Africa: The Case Of Nigeria," 2009 Conference, August 16-22, 2009, Beijing, China, International Association of Agricultural Economists 50537, International Association of Agricultural Economists.
    2. Nkonya, Ephraim & Phillip, Dayo & Mogues, Tewodaj & Pender, John & Kato, Edward, 2010. "From the ground up: Impacts of a pro-poor community-driven development project in Nigeria," Research reports, International Food Policy Research Institute (IFPRI) Ephraim Nkonya, et al., International Food Policy Research Institute (IFPRI).

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