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Zenga’s new index of economic inequality, its estimation, and an analysis of incomes in Italy


  • Greselin, Francesca
  • Pasquazzi, Leo
  • Zitikis, Ricardas


For at least a century academics and governmental researchers have been developing measures that would aid them in understanding income distributions, their differences with respect to geographic regions, and changes over time periods. It is a challenging area due to a number of reasons, one of them being the fact that different measures, or indices, are needed to reveal different features of income distributions. Keeping also in mind that the notions of ‘poor’ and ‘rich’ are relative to each other, M. Zenga has recently proposed a new index of economic inequality. The index is remarkably insightful and useful, but deriving statistical inferential results has been a challenge. For example, unlike many other indices, Zenga’s new index does not fall into the classes of L-, U-, and V -statistics. In this paper we derive desired statistical inferential results, explore their performance in a simulation study, and then employ the results to analyze data from the Bank of Italy’s Survey on Household Income and Wealth.

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  • Greselin, Francesca & Pasquazzi, Leo & Zitikis, Ricardas, 2009. "Zenga’s new index of economic inequality, its estimation, and an analysis of incomes in Italy," MPRA Paper 17147, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:17147

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    1. Feleke, Shiferaw T. & Kilmer, Richard L. & Gladwin, Christina H., 2003. "Determinants Of Food Security In Southern Ethiopia," 2003 Annual meeting, July 27-30, Montreal, Canada 22010, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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    Cited by:

    1. Matti Langel & Yves Tillé, 2012. "Inference by linearization for Zenga’s new inequality index: a comparison with the Gini index," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 75(8), pages 1093-1110, November.
    2. Greselin Francesca, 2014. "More Equal and Poorer, or Richer but More Unequal?," Stochastics and Quality Control, De Gruyter, vol. 29(2), pages 99-117, December.
    3. Michele Zenga, 2016. "On the decomposition by subpopulations of the point and synthetic Zenga (2007) inequality indexes," METRON, Springer;Sapienza Università di Roma, vol. 74(3), pages 375-405, December.

    More about this item


    Zenga index; lower conditional expectation; upper conditional expectation; confidence interval; Bonferroni curve; Lorenz curve; Vervaat process.;

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General

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