IDEAS home Printed from https://ideas.repec.org/a/rjr/romjef/vy2011i3p255-266.html
   My bibliography  Save this article

About the Accuracy of Gini Index for Measuring the Poverty

Author

Listed:
  • Stefanescu, Stefan V.

    () (The Research Institute for Quality of Life, Romanian Academy)

Abstract

The Gini index is often used to measure the income inequality presented inside a specified group of individuals and sometimes also for evaluating the “poverty” degree of this population. In this article we show that Gini’s index is not always so adequate to measure the poverty level of an analyzed population. More precisely, we’ll get two very different income distributions which finally give the same value for Gini’s index. Having in mind this aspect, we recommend with priority to use the Gini index only together with other similar or complementary poverty indicators to evaluate the poverty level of a given population.

Suggested Citation

  • Stefanescu, Stefan V., 2011. "About the Accuracy of Gini Index for Measuring the Poverty," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(3), pages 255-266, September.
  • Handle: RePEc:rjr:romjef:v::y:2011:i:3:p:255-266
    as

    Download full text from publisher

    File URL: http://www.ipe.ro/rjef/rjef3_11/rjef3_2011p255-266.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. P. Zhou & B. Ang & D. Zhou, 2010. "Weighting and Aggregation in Composite Indicator Construction: a Multiplicative Optimization Approach," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 96(1), pages 169-181, March.
    2. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-766, May.
    3. Maasoumi, Esfandiar & Lugo, Maria, 2006. "The Information Basis of Multivariate Poverty Assessments," Departmental Working Papers 0603, Southern Methodist University, Department of Economics.
    4. Chakravarty, Satya R., 1983. "A new index of poverty," Mathematical Social Sciences, Elsevier, vol. 6(3), pages 307-313, December.
    5. Maria Ana Lugo, 2005. "Comparing Multidimensional Indices of Inequality: methods and application," Working Papers 14, ECINEQ, Society for the Study of Economic Inequality.
    6. Gastwirth, Joseph L, 1971. "A General Definition of the Lorenz Curve," Econometrica, Econometric Society, vol. 39(6), pages 1037-1039, November.
    7. Donaldson, David & Weymark, John A., 1980. "A single-parameter generalization of the Gini indices of inequality," Journal of Economic Theory, Elsevier, vol. 22(1), pages 67-86, February.
    8. Yitzhaki, Shlomo, 1983. "On an Extension of the Gini Inequality Index," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 24(3), pages 617-628, October.
    9. Sen, Amartya K, 1976. "Poverty: An Ordinal Approach to Measurement," Econometrica, Econometric Society, vol. 44(2), pages 219-231, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Horses for Courses
      by Mike Isaacson in Vulgar Economics on 2015-06-14 20:00:00

    More about this item

    Keywords

    measurement and analysis of poverty; Gini index; Lorenz curve; income distribution; inequality index;

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rjr:romjef:v::y:2011:i:3:p:255-266. 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: (Corina Saman). General contact details of provider: http://edirc.repec.org/data/ipacaro.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.