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The Gini coefficient for a mixture of Ln-Normal populations

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  • Young, Alwyn

Abstract

I present a formula which allows for the calculation of the Gini coefficient when the overall population distribution is unknown, but there is some information on the Gini coefficients or moments of population sub-groups. When applied to data on the global and US income distribution, it proves to be extremely accurate, producing estimates with errors that are small fractions of one percent.

Suggested Citation

  • Young, Alwyn, 2011. "The Gini coefficient for a mixture of Ln-Normal populations," LSE Research Online Documents on Economics 54246, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:54246
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    File URL: http://eprints.lse.ac.uk/54246/
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    References listed on IDEAS

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    1. Dirk Kreuger & Fabrizio Perri, 2002. "Does Income Inequality Lead to Consumption Inequality? Evidence and Theory," Working Papers 02-15, New York University, Leonard N. Stern School of Business, Department of Economics.
    2. Dirk Krueger & Fabrizio Perri, 2006. "Does Income Inequality Lead to Consumption Inequality? Evidence and Theory -super-1," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 73(1), pages 163-193.
    3. Bourguignon, Francois, 1979. "Decomposable Income Inequality Measures," Econometrica, Econometric Society, vol. 47(4), pages 901-920, July.
    4. Xavier Sala-i-Martin, 2006. "The World Distribution of Income: Falling Poverty and … Convergence, Period," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 121(2), pages 351-397.
    5. Modalsli, Jørgen, 2011. "Inequality and growth in the very long run: inferring inequality from data on social groups," Memorandum 11/2011, Oslo University, Department of Economics.
    6. Shorrocks, A F, 1980. "The Class of Additively Decomposable Inequality Measures," Econometrica, Econometric Society, vol. 48(3), pages 613-625, April.
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    Cited by:

    1. Richard Bluhm & Denis de Crombrugghe & Adam Szirmai, 2016. "Poverty Accounting. A fractional response approach to poverty decomposition," Working Papers 413, ECINEQ, Society for the Study of Economic Inequality.
    2. Crombrugghe, D.P.I. de & Szirmai, A. & Bluhm, R., 2014. "Poor trends: The pace of poverty reduction after the Millennium Development Agenda," MERIT Working Papers 2014-006, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    3. Modalsli, Jørgen, 2011. "Inequality and growth in the very long run: inferring inequality from data on social groups," Memorandum 11/2011, Oslo University, Department of Economics.
    4. Jørgen Modalsli, 2015. "Inequality in the very long run: inferring inequality from data on social groups," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 13(2), pages 225-247, June.
    5. Bluhm, Richard & de Crombrugghe, Denis & Szirmai, Adam, 2018. "Poverty accounting," European Economic Review, Elsevier, vol. 104(C), pages 237-255.
    6. Ivana Malá, 2013. "Použití konečných směsí logaritmicko-normálních rozdělení pro modelování příjmů českých domácností [The Use of Finite Mixtures of Lognormal Distribution for the Modelling of Household Income Distri," Politická ekonomie, Prague University of Economics and Business, vol. 2013(3), pages 356-372.

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    More about this item

    JEL classification:

    • J1 - Labor and Demographic Economics - - Demographic Economics
    • N0 - Economic History - - General

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