Maximization of statistical heterogeneity: From Shannon’s entropy to Gini’s index
Different fields of Science apply different quantitative gauges to measure statistical heterogeneity. Statistical Physics and Information Theory commonly use Shannon’s entropy which measures the randomness of probability laws, whereas Economics and the Social Sciences commonly use Gini’s index which measures the evenness of probability laws. Motivated by the principle of maximal entropy, we explore the maximization of statistical heterogeneity–for probability laws with a given mean–in the four following scenarios: (i) Shannon entropy maximization subject to a given dispersion level; (ii) Gini index maximization subject to a given dispersion level; (iii) Shannon entropy maximization subject to a given Gini index; (iv) Gini index maximization subject to a given Shannon entropy. Analysis of these four scenarios results in four different classes of heterogeneity-maximizing probability laws–yielding an in-depth description of both the marked differences and the interplay between the Physical “randomness-based” and the Economic “evenness-based” approaches to the maximization of statistical heterogeneity.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 389 (2010)
Issue (Month): 16 ()
|Contact details of provider:|| Web page: http://www.journals.elsevier.com/physica-a-statistical-mechpplications/|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Alfarano, Simone & Milakovic, Mishael, 2008.
"Does classical competition explain the statistical features of firm growth?,"
Elsevier, vol. 101(3), pages 272-274, December.
- Alfarano, Simone & Milaković, Mishael, 2008. "Does Classical Competition Explain the Statistical Features of Firm Growth?," Economics Working Papers 2008,03, Christian-Albrechts-University of Kiel, Department of Economics.
- S. Illeris & G. Akehurst, 2002. "Introduction," The Service Industries Journal, Taylor & Francis Journals, vol. 22(1), pages 1-3, January.
When requesting a correction, please mention this item's handle: RePEc:eee:phsmap:v:389:y:2010:i:16:p:3023-3038. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamier, Wendy)
If references are entirely missing, you can add them using this form.