Inequality and negative income
AbstractThis 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 InfoPaper provided by University of Cologne, Department for Economic and Social Statistics in its series Discussion Papers in Statistics and Econometrics with number 4/96.
Date of creation: 1996
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- Nkonya, Ephraim & Phillip, Dayo & Mogues, Tewodaj & Pender, John & Yahaya, Muhammed Kuta & Adebowale, Gbenga & Arokoyo, Tunji & Kato, Edward, 2008.
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