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An $L^p$-norm based approach to measuring inter-distributional inequality

Author

Listed:
  • Ritabrata Munshi

    (Indian Statistical Institute, Kolkata & TIFR, Mumbai)

  • Soumyanetra Munshi

    (Economic Research Unit, Indian Statistical Institute, Kolkata)

Abstract

This note proposes a class of indices of inter-distributional inequality (IDI) based on $L^p$-norm. We also modify the axiom of translation invariance and make it `level sensitive'. Level sensitivity, in the context of IDI measures, essentially captures the idea that an IDI is less affected by change in the distributional inequality at higher margins of the distributions than at the lower margins. Our proposed IDI measure, in addition to satisfying some standard properties of IDI measures, also satisfies the axiom of level sensitivity.

Suggested Citation

  • Ritabrata Munshi & Soumyanetra Munshi, 2017. "An $L^p$-norm based approach to measuring inter-distributional inequality," Economics Bulletin, AccessEcon, vol. 37(2), pages 1113-1121.
    • Handle: RePEc:ebl:ecbull:eb-16-00736
    as

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    References listed on IDEAS

    as
    1. Maria Ana Lugo, 2005. "Comparing Multidimensional Indices of Inequality: methods and application," Working Papers 14, ECINEQ, Society for the Study of Economic Inequality.
    2. Kolm, Serge-Christophe, 1976. "Unequal inequalities. I," Journal of Economic Theory, Elsevier, vol. 12(3), pages 416-442, June.
    3. Yalonetzky, Gaston, 2012. "Measuring group disadvantage with inter-distributional inequality indices: A critical review and some amendments to existing indices," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 6, pages 1-32.
    4. Shorrocks, Anthony F, 1982. "On the Distance between Income Distributions [Inequality Measures between Income Distributions with Applications]," Econometrica, Econometric Society, vol. 50(5), pages 1337-1339, September.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Measurement of inter-distributional inequality; $L^p$-norm based approach; Level-sensitive IDI measure;
    All these keywords.

    JEL classification:

    • D3 - Microeconomics - - Distribution
    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory

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