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A Paradox for Inequality Indices

Author

Listed:
  • Satya Chakravarty

    (Indian Statistical Institute)

  • Palash Sarkar

    (Indian Statistical Institute)

Abstract

This paper identifies a paradox for inequality indices which is similar to the well known Simpson’s paradox in statistics. For the Gini and Bonferroni indices, concrete examples of the paradox are provided and general methods are described for obtaining examples of the paradox for arbitrary sizepopulation.

Suggested Citation

  • Satya Chakravarty & Palash Sarkar, 2020. "A Paradox for Inequality Indices," Working Papers 559, ECINEQ, Society for the Study of Economic Inequality.
  • Handle: RePEc:inq:inqwps:ecineq2020-559
    as

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    File URL: http://www.ecineq.org/milano/WP/ECINEQ2020-559.pdf
    File Function: First version, 2020
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    References listed on IDEAS

    as
    1. Weymark, John A., 1981. "Generalized gini inequality indices," Mathematical Social Sciences, Elsevier, vol. 1(4), pages 409-430, August.
    2. Rolf Aaberge, 2007. "Gini’s nuclear family," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 5(3), pages 305-322, December.
    3. Satya R. Chakravarty & Palash Sarkar, 2020. "New Perspectives on the Gini and Bonferroni Indices of Inequality," Working Papers 538, ECINEQ, Society for the Study of Economic Inequality.
    4. Sen, Amartya, 1973. "On Economic Inequality," OUP Catalogue, Oxford University Press, number 9780198281931.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    inequality; paradox; Gini index; Bonferroni index; Simpson’s paradox;
    All these keywords.

    JEL classification:

    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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