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Relative p-bipolarisation measurement with generalised means and hybrid Lorenz curves

Author

Listed:
  • Marek Kosny

    (Wroclaw University of Economics, Poland)

  • Gaston Yalonetzky

    (University of Leeds, U.K.)

Abstract

We propose the first class of relative bipolarisation measures which are both percentile-independent and rank-independent. These are based on differences of generalised means. We also propose a relative bipolarisation pre-ordering based on pairs of hybrid Lorenz curves which combine features of both relative and generalised Lorenz curves. Considering different ways to divide distributions into two mutually exclusive and exhaustive groups using a percentile (e.g. the median), we also characterize the very few instances in which one distribution can dominate another one in terms of relative bipolarisation across the whole percentile domain. We illustrate the measures and curves with a comparison of the US versus Germany across time.

Suggested Citation

  • Marek Kosny & Gaston Yalonetzky, 2016. "Relative p-bipolarisation measurement with generalised means and hybrid Lorenz curves," Working Papers 404, ECINEQ, Society for the Study of Economic Inequality.
    • Handle: RePEc:inq:inqwps:ecineq2016-404
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    File URL: http://www.ecineq.org/milano/WP/ECINEQ2016-404.pdf
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    References listed on IDEAS

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    7. Ma Casilda Lasso de la Vega & Ana Urrutia & Henar Díez, 2010. "Unit Consistency And Bipolarization Of Income Distributions," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 56(1), pages 65-83, March.
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    Cited by:

    1. Gaston Yalonetzky, 2017. "The Benchmark of Maximum Relative Bipolarisation," Research on Economic Inequality, in: Research on Economic Inequality, volume 25, pages 39-50, Emerald Group Publishing Limited.
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    3. Gaston Yalonetzky, 2017. "The Necessary Requirement of Median Independence for Relative Bipolarisation Measurement," Research on Economic Inequality, in: Research on Economic Inequality, volume 25, pages 51-62, Emerald Group Publishing Limited.

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    More about this item

    Keywords

    relative bipolarisation; income distribution.;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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