2018
DOI: 10.15611/me.2018.14.04
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Decomposition of the Gini index in the presence of observations with negative values

Abstract: The problem of calculating the Gini index in the presence of negative inputs may be overcome by decomposing the quantity at stake into "positive" and "negative" parts, which, by definition, include only non-negative values. For such constructed sources, concentration indexes may be calculated and their influence on the overall inequality evaluated. In the paper we present the methodology of such an assessment and illustrate it with the example of Italian income data.

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Cited by 2 publications
(1 citation statement)
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“…Table 4 shows the values of the Gini index for the sequences corresponding to the orientation of the cane and the control applied to the motor wheel (both these sequences can have negative values and hence the Gini index is applied to the absolute values in order to preserve the usual interpretation, De Battisti, Porro & Vernizzi (2019) ; Ostasiewicz & Vernizzi (2018) ). Though the lengths of the sequences differ, since they correspond to similar experiments the corresponding Gini indexes are comparable.…”
Section: Resultsmentioning
confidence: 99%
“…Table 4 shows the values of the Gini index for the sequences corresponding to the orientation of the cane and the control applied to the motor wheel (both these sequences can have negative values and hence the Gini index is applied to the absolute values in order to preserve the usual interpretation, De Battisti, Porro & Vernizzi (2019) ; Ostasiewicz & Vernizzi (2018) ). Though the lengths of the sequences differ, since they correspond to similar experiments the corresponding Gini indexes are comparable.…”
Section: Resultsmentioning
confidence: 99%