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A nice estimation of Gini index and power Pen's parade


  • Sadefo Kamdem, Jules


Under the assumption that an economic variable y such as income, is a power function of its rank among n individuals, we provide the coefficient of variation and the Gini index as functions of the power degree of the Pen's parade. In fact, knowing the power degree of the Pen's parade function, we obtain the coefficient of variation and a sharp analytical simple way to compute Gini index in terms of the power degree. Reciprocally, knowing, the coefficient of variation of a said variable, we can also provide the power degree of the corresponding Pen's parade, hence deducting its shape. Several examples are given to illustrate our methods. Special attention is given to countries' Gini indices of the World development indicators report 2009 (WDI 2009).

Suggested Citation

  • Sadefo Kamdem, Jules, 2012. "A nice estimation of Gini index and power Pen's parade," Economic Modelling, Elsevier, vol. 29(4), pages 1299-1304.
  • Handle: RePEc:eee:ecmode:v:29:y:2012:i:4:p:1299-1304 DOI: 10.1016/j.econmod.2012.03.015

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    References listed on IDEAS

    1. Stéphane Mussard & J. Sadefo Kamdem & Françoise Seyte & Michel Terraza, 2011. "Quadratic Pen'S Parade And The Computation Of The Gini Index," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 57(3), pages 583-587, September.
    2. Shalit, Haim & Yitzhaki, Shlomo, 1984. " Mean-Gini, Portfolio Theory, and the Pricing of Risky Assets," Journal of Finance, American Finance Association, vol. 39(5), pages 1449-1468, December.
    3. Yitzhaki, Shlomo, 1982. "Stochastic Dominance, Mean Variance, and Gini's Mean Difference," American Economic Review, American Economic Association, vol. 72(1), pages 178-185, March.
    4. World Bank, 2009. "World Development Indicators 2009," World Bank Publications, The World Bank, number 4367.
    5. Gastwirth, Joseph L, 1972. "The Estimation of the Lorenz Curve and Gini Index," The Review of Economics and Statistics, MIT Press, vol. 54(3), pages 306-316, August.
    6. Tomson Ogwang, 2011. "QUADRATIC PEN's PARADES: SOME NEW RESULTS AND AN APPLICATION," Working Papers 1101, Brock University, Department of Economics, revised Dec 2011.
    7. Milanovic, Branko, 1997. "A simple way to calculate the Gini coefficient, and some implications," Economics Letters, Elsevier, vol. 56(1), pages 45-49, September.
    8. Lerman, Robert I. & Yitzhaki, Shlomo, 1984. "A note on the calculation and interpretation of the Gini index," Economics Letters, Elsevier, vol. 15(3-4), pages 363-368.
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    Cited by:

    1. Keng, Shao-Hsun & Orazem, Peter F., 2017. "Performance Pay, the Marriage Market and Rising Income Inequality in Taiwan," ISU General Staff Papers 201702050800001023, Iowa State University, Department of Economics.

    More about this item


    Applied econometrics; Development economics; Gini index; Income inequality; Pen's parade; World development indicators;

    JEL classification:

    • C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General


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