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The Asymptotic Distribution of the Generalized Gini Indices of Inequality

Author

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  • Garry F. Barrett
  • Krishna Pendakur

Abstract

This paper presents the asymptotic distributions of the S-Gini and E-Gini relative and absolute indices of inequality. The generalized Gini indices are defined in terms of Lorenz ordinates and results on the asymptotic covariance matrix of Lorenz ordinates are used to derive the large sample properties of the indices. The methods are illustrated by examining changes in the distribution of nondurable consumption in Canada over the 1980s. The authors find that inequality was lower in 1972 and 1990 than in 1984. Over the entire data period, relative inequality was either static or increased slightly, while absolute inequality declined.

Suggested Citation

  • Garry F. Barrett & Krishna Pendakur, 1995. "The Asymptotic Distribution of the Generalized Gini Indices of Inequality," Canadian Journal of Economics, Canadian Economics Association, vol. 28(4b), pages 1042-1055, November.
  • Handle: RePEc:cje:issued:v:28:y:1995:i:4b:p:1042-55
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    Citations

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    Cited by:

    1. Thomas Demuynck, 2012. "An (almost) unbiased estimator for the S-Gini index," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 10(1), pages 109-126, March.
    2. repec:bla:asiaec:v:32:y:2018:i:2:p:165-185 is not listed on IDEAS
    3. repec:eee:phsmap:v:511:y:2018:i:c:p:280-288 is not listed on IDEAS
    4. Peter Warr & Sitthiroth Rasphone & Jayant Menon, 2015. "Two Decades of Declining Poverty Despite Rising Inequality in Laos," Departmental Working Papers 2015-13, The Australian National University, Arndt-Corden Department of Economics.
    5. Khosravi Tanak, A. & Mohtashami Borzadaran, G.R. & Ahmadi, J., 2015. "Entropy maximization under the constraints on the generalized Gini index and its application in modeling income distributions," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 438(C), pages 657-666.
    6. repec:taf:jnlbes:v:36:y:2018:i:1:p:146-159 is not listed on IDEAS
    7. Duclos, Jean-Yves & Tabi, Martin, 1999. "Inégalité et redistribution du revenu, avec une application au Canada," L'Actualité Economique, Société Canadienne de Science Economique, vol. 75(1), pages 95-122, mars-juin.
    8. Stéphane Mussard & Patrick Richard, 2012. "Linking Yitzhaki's and Dagum's Gini decompositions," Applied Economics, Taylor & Francis Journals, vol. 44(23), pages 2997-3010, August.
    9. Jean-Yves Duclos, 2000. "Gini Indices and the Redistribution of Income," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 7(2), pages 141-162, March.
    10. Khosravi Tanak, A. & Mohtashami Borzadaran, G.R. & Ahmadi, J., 2017. "Maximum Tsallis entropy with generalized Gini and Gini mean difference indices constraints," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 471(C), pages 554-560.
    11. Cosme Vodounou, 2004. "Pauvreté, croissance et ciblage : propriétés asymptotiques des estimateurs des élasticités avec application au Bénin," Revue d’économie du développement, De Boeck Université, vol. 12(2), pages 65-84.
    12. Peter Warr & Sitthiroth Rasphone & Jayant Menon, 2018. "Two decades of declining poverty but rising inequality in Laos," Discussion Papers 2018-06, University of Nottingham, CREDIT.
    13. Peter Warr & Lwin Lwin Aung, 2018. "Poverty and inequality impact of natural disasters: Myanmar, 2005 to 2010," Departmental Working Papers 2018-15, The Australian National University, Arndt-Corden Department of Economics.
    14. Giovanni Maria Giorgi & Paola Palmitesta & Corrado Provasi, 2006. "Asymptotic and bootstrap inference for the generalized Gini indices," Metron - International Journal of Statistics, Dipartimento di Statistica, Probabilità e Statistiche Applicate - University of Rome, vol. 0(1), pages 107-124.
    15. Shahateet, Mohammed & Al-Tayyeb, Saud, 2007. "Regional consumption inequalities in Jordan: Empirical study," MPRA Paper 57400, University Library of Munich, Germany.

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