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An elementary characterization of the Gini index

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  • Sanchez-Perez, Joss
  • Plata-Perez, Leobardo
  • Sanchez-Sanchez, Francisco

Abstract

The Gini coefficient or index is perhaps one of the most used indicators of social and economic conditions. In this paper we characterize the Gini index as the unique function that satisfies the properties of scale invariance, symmetry, proportionality and convexity in similar rankings. Furthermore, we discuss a simpler way to compute it.

Suggested Citation

  • Sanchez-Perez, Joss & Plata-Perez, Leobardo & Sanchez-Sanchez, Francisco, 2012. "An elementary characterization of the Gini index," MPRA Paper 36328, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:36328
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    References listed on IDEAS

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    1. Yaari, Menahem E, 1987. "The Dual Theory of Choice under Risk," Econometrica, Econometric Society, vol. 55(1), pages 95-115, January.
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    Keywords

    Gini index; income inequality; axiomatization;

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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