The class of absolute decomposable inequality measures

Bosmans, Kristof; Cowell, Frank

doi:10.1016/j.econlet.2010.09.007

Cited by 33 publications

(26 citation statements)

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“…It is easy to see that J(x) is also decomposable and an absolute inequality measure. As such, Bosmans and Cowell (2010) (see also Chakravarty and Tyagarupananda (1998)) can be applied obtaining that J(x) is a positive multiple of the following measures: I(x) = (1/n(x))…”

Section: Discussionmentioning

confidence: 99%

Proposing indicators to measure achievement and shortfall inequality consistently

Vega

Aristondo

2012

Journal of Health Economics

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In several economic fields, such as those related to health or education, the individuals' characteristics are measured by bounded variables. Accordingly, these characteristics may be indistinctly represented by achievements or shortfalls. A difficulty arises when inequality needs to be assessed. One may focus either on achievements or on shortfalls but the respective inequality rankings may lead to contradictory results. In this note we propose a procedure to define indicators that measure equally the achievement and shortfall inequality. Specifically, we derive measures which are invariant under ratio-scale or translation transformations, and a decomposable measure is also obtained. As the indicators proposed depend on the distribution bounds, families of indices that guarantee the same inequality rankings regardless of the distribution maximal levels are identified.

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Section: Discussionmentioning

confidence: 99%

Proposing indicators to measure achievement and shortfall inequality consistently

Vega

Aristondo

2012

Journal of Health Economics

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“…Una consiste en basarse en el concepto relativo, que depende de las diferencias proporcionales en los ingresos, mientras que la otra hace referencia a las brechas de ingresos en términos absolutos y suele denominarse "desigualdad absoluta". La distinción entre una y otra se ha perdido casi totalmente en los estudios empíricos actuales sobre la temática, que refieren al concepto relativo, aunque en la literatura sobre medición de la desigualdad de la última década se ha discutido sobre la cuantificación de la desigualdad absoluta (Chakravarty y Tyagarupananda, 2009;Bosmans y Cowell, 2010). La primera se refiere a la relación entre los ingresos de los hogares y el ingreso medio de la economía: si todos los ingresos se incrementan en una misma proporción, la desigualdad no cambia.…”

Section: Los Conceptos Subyacentes Y Los Indicadores Utilizadosunclassified

Desigualdad, Concentración Del Ingreso y Tributación Sobre Las Altas Rentas en América Latina

Jiménez¹

2015

ECLAC Books

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“…Result 2 Tyagarupananda 1998, Bosmans andCowell 2010). For all ∈ x X, an absolute inequality measure I belongs to the set I* and satisfies subgroup decomposability if and only if it is a continuous and strictly increasing function of the following class of measures: (Chakravarty 2000).…”

Section: Basic Conceptsmentioning

confidence: 99%

Inequality Measurement with Subgroup Decomposability and Level-Sensitivity

Subramanian

2011

Economics

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Subgroup Decomposability is a very useful property in an inequality measure, and level-sensitivity, which requires a given level of inequality to acquire a greater significance the poorer a population is, is a distributionally appealing axiom for an inequality index to satisfy. In this paper, which is largely in the nature of a recollection of important results on the characterization of subgroup decomposable inequality measures, the mutual compatibility of subgroup decomposability and level-sensitivity is examined, with specific reference to a classification of inequality measures into relative, absolute, centrist, and unit-consistent types. Arguably, the most appealing combination of properties for a symmetric, continuous, normalized, transfer-preferring and replication-invariant (S-C-N-T-R) inequality measure to satisfy is that of subgroup decomposability, centrism, unit-consistency and level-sensitivity. The existence of such an inequality index is (as far as this author is aware) yet to be established. However, it can be shown, as is done in this paper, that there does exist an S-C-N-T-R measure satisfying the (plausibly) next-best combination of properties -those of decomposability, centrism, unit-consistency and level-neutrality. Special IssueThe Measurement of Inequality and Well-Being: New Perspectives JEL D30, D31, D63.

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The class of absolute decomposable inequality measures

Abstract: We provide a parsimonious axiomatisation of the complete class of absolute inequality indices. Our approach uses only a weak form of decomposability and does not require a priori that the measures be differentiable.JEL: D63, H20, H21

Cited by 33 publications

References 5 publications

Proposing indicators to measure achievement and shortfall inequality consistently

Proposing indicators to measure achievement and shortfall inequality consistently

Desigualdad, Concentración Del Ingreso y Tributación Sobre Las Altas Rentas en América Latina

Inequality Measurement with Subgroup Decomposability and Level-Sensitivity

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