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Further tricks with the Lorenz curve

Author

Listed:
  • Sreenivasan Subramanian

    (Previously: Madras Institute of Development Studies, Currently: Independent Scholar)

Abstract

The present note is the third in a series that deals with simple manipulations of the Lorenz curve intended to cast light on this or that aspect of the measurement of inequality. In this note, a procedure is outlined for ‘adjusting' the Gini coefficient of inequality for the skewness of the Lorenz curve, and for similarly ‘adjusting' the so-called ‘Kolkata' index of inequality, as well as the Lorenz curve itself, in such a way that the inequality orderings of distributions induced by these adjusted measures and the adjusted Lorenz curve are equivalent.

Suggested Citation

  • Sreenivasan Subramanian, 2019. "Further tricks with the Lorenz curve," Economics Bulletin, AccessEcon, vol. 39(3), pages 1677-1686.
    • Handle: RePEc:ebl:ecbull:eb-19-00384
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2019/Volume39/EB-19-V39-I3-P158.pdf
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    References listed on IDEAS

    as
    1. Kolm, Serge-Christophe, 1976. "Unequal inequalities. II," Journal of Economic Theory, Elsevier, vol. 13(1), pages 82-111, August.
    2. Anthony F. Shorrocks & James E. Foster, 1987. "Transfer Sensitive Inequality Measures," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 54(3), pages 485-497.
    3. Kolm, Serge-Christophe, 1976. "Unequal inequalities. I," Journal of Economic Theory, Elsevier, vol. 12(3), pages 416-442, June.
    4. Peter J. Lambert & Subbu Subramanian, 2015. "Shaikh and Ragab's `Incomes of the Vast Majority': Some additions and extensions," Working Papers 354, ECINEQ, Society for the Study of Economic Inequality.
    5. Chatterjee, Arnab & Ghosh, Asim & Chakrabarti, Bikas K., 2017. "Socio-economic inequality: Relationship between Gini and Kolkata indices," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 466(C), pages 583-595.
    6. Rolf Aaberge, 2009. "Ranking intersecting Lorenz curves," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 33(2), pages 235-259, August.
    7. Kakwani, Nanak C & Podder, N, 1976. "Efficient Estimation of the Lorenz Curve and Associated Inequality Measures from Grouped Observations," Econometrica, Econometric Society, vol. 44(1), pages 137-148, January.
    8. Sreenivasan Subramanian, 2015. "More tricks with the lorenz curve," Economics Bulletin, AccessEcon, vol. 35(1), pages 580-589.
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    Cited by:

    1. Masato Okamoto, 2022. "Level-adjusted S-Gini index and its complementary index as a pair of sensitivity-adjustable inequality measures," Economics Bulletin, AccessEcon, vol. 42(1), pages 1-16.

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    More about this item

    Keywords

    Lorenz Curve; Pseudo-Lorenz Curve; Gini Coefficient; Kolkata Index; Skewness;
    All these keywords.

    JEL classification:

    • D3 - Microeconomics - - Distribution
    • D6 - Microeconomics - - Welfare Economics

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