IDEAS home Printed from https://ideas.repec.org/a/eee/ecolet/v118y2013i2p370-374.html
   My bibliography  Save this article

A bottom poor sensitive Gini coefficient and maximum entropy estimation of income distributions

Author

Listed:
  • Ryu, Hang Keun

Abstract

A bottom poor sensitive Gini coefficient (pgini) is defined by replacing income observations with their reciprocal values in the Gini coefficient. The underlying true income share function can be derived approximately using the maximum entropy method given the pgini coefficient.

Suggested Citation

  • Ryu, Hang Keun, 2013. "A bottom poor sensitive Gini coefficient and maximum entropy estimation of income distributions," Economics Letters, Elsevier, vol. 118(2), pages 370-374.
    • Handle: RePEc:eee:ecolet:v:118:y:2013:i:2:p:370-374
    DOI: 10.1016/j.econlet.2012.11.018
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0165176512006088
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.econlet.2012.11.018?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Dagum, Camilo, 1997. "A New Approach to the Decomposition of the Gini Income Inequality Ratio," Empirical Economics, Springer, vol. 22(4), pages 515-531.
    2. Yitzhaki, Shlomo, 1983. "On an Extension of the Gini Inequality Index," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 24(3), pages 617-628, October.
    3. Fields, Gary S & Fei, John C H, 1978. "On Inequality Comparisons," Econometrica, Econometric Society, vol. 46(2), pages 303-316, March.
    4. Donaldson, David & Weymark, John A., 1983. "Ethically flexible gini indices for income distributions in the continuum," Journal of Economic Theory, Elsevier, vol. 29(2), pages 353-358, April.
    5. Wolfson, Michael C, 1994. "When Inequalities Diverge," American Economic Review, American Economic Association, vol. 84(2), pages 353-358, May.
    6. Ryu, Hang K., 1993. "Maximum entropy estimation of density and regression functions," Journal of Econometrics, Elsevier, vol. 56(3), pages 397-440, April.
    7. Hang Keun Ryu, 2008. "Maximum Entropy Estimation of Income Distributions from Bonferroni Indices," Economic Studies in Inequality, Social Exclusion, and Well-Being, in: Duangkamon Chotikapanich (ed.), Modeling Income Distributions and Lorenz Curves, chapter 10, pages 193-210, Springer.
    8. Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
    9. Lerman, Robert I. & Yitzhaki, Shlomo, 1984. "A note on the calculation and interpretation of the Gini index," Economics Letters, Elsevier, vol. 15(3-4), pages 363-368.
    10. Kakwani, Nanak, 1980. "On a Class of Poverty Measures," Econometrica, Econometric Society, vol. 48(2), pages 437-446, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Russell Davidson, 2018. "Statistical Inference on the Canadian Middle Class," Econometrics, MDPI, vol. 6(1), pages 1-18, March.
    2. Michael McAleer & Hang K. Ryu & Daniel J. Slottje, 2019. "A New Inequality Measure that is Sensitive to Extreme Values and Asymmetries," Advances in Decision Sciences, Asia University, Taiwan, vol. 23(1), pages 31-61, March.
    3. IVASKAITE-TAMOSIUNE Viginta & THIEMANN Andreas, 2021. "The budgetary and redistributive impact of pension taxation in the EU: A microsimulation analysis," JRC Working Papers on Taxation & Structural Reforms 2021-08, Joint Research Centre.
    4. N. Nakhaei Rad & G.R. Mohtashami Borzadaran & G.H. Yari, 2016. "Maximum entropy estimation of income share function from generalized Gini index," Journal of Applied Statistics, Taylor & Francis Journals, vol. 43(16), pages 2910-2921, December.
    5. Preda, Vasile & Dedu, Silvia & Gheorghe, Carmen, 2015. "New classes of Lorenz curves by maximizing Tsallis entropy under mean and Gini equality and inequality constraints," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 436(C), pages 925-932.
    6. Ryu, Hang K. & Slottje, Daniel J., 2017. "Maximum entropy estimation of income distributions from Basmann’s weighted geometric mean measure," Journal of Econometrics, Elsevier, vol. 199(2), pages 221-231.
    7. G.-Fivos Sargentis & Theano Iliopoulou & Panayiotis Dimitriadis & Nikolaos Mamassis & Demetris Koutsoyiannis, 2021. "Stratification: An Entropic View of Society’s Structure," World, MDPI, vol. 2(2), pages 1-22, March.
    8. Christiana Manu, 2021. "Effect of Globalization on Income Inequality in Ghana," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 13(2), pages 1-15, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. Claudio Zoli, 2002. "Inverse stochastic dominance, inequality measurement and Gini indices," Journal of Economics, Springer, vol. 77(1), pages 119-161, December.
    3. Khosravi Tanak, A. & Mohtashami Borzadaran, G.R. & Ahmadi, Jafar, 2018. "New functional forms of Lorenz curves by maximizing Tsallis entropy of income share function under the constraint on generalized Gini index," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 511(C), pages 280-288.
    4. Fabio Maccheroni & Pietro Muliere & Claudio Zoli, 2005. "Inverse stochastic orders and generalized Gini functionals," Metron - International Journal of Statistics, Dipartimento di Statistica, Probabilità e Statistiche Applicate - University of Rome, vol. 0(3), pages 529-559.
    5. Rolf Aaberge, 2007. "Gini’s nuclear family," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 5(3), pages 305-322, December.
    6. H. Eme Ichoku & William Fonta & Michael Thiede, 2011. "Socioeconomic gradients in self-rated health: a developing country case study of Enugu State, Nigeria," Economic Change and Restructuring, Springer, vol. 44(3), pages 179-202, August.
    7. Walter Piesch, 2005. "A look at the structure of some extended Ginis," Metron - International Journal of Statistics, Dipartimento di Statistica, Probabilità e Statistiche Applicate - University of Rome, vol. 0(2), pages 263-296.
    8. Rodríguez, Juan Gabriel & Salas, Rafael, 2014. "The Gini coefficient: Majority voting and social welfare," Journal of Economic Theory, Elsevier, vol. 152(C), pages 214-223.
    9. Vincenzo Prete & Alessandro Sommacal & Claudio Zoli, 2016. "Optimal Non-Welfarist Income Taxation for Inequality and Polarization Reduction," Working Papers 23/2016, University of Verona, Department of Economics.
    10. Rolf Aaberge, 2003. "Mean-Spread-Preserving Transformations," Discussion Papers 360, Statistics Norway, Research Department.
    11. Duclos, Jean-Yves & Jalbert, Vincent & Araar, Abdelkrim, 2000. "Classical Horizontal Inequity and Reranking: an Integrated Approach," Cahiers de recherche 0002, Université Laval - Département d'économique.
    12. E. Schechtman & S. Yitzhaki, 2003. "A Family of Correlation Coefficients Based on the Extended Gini Index," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 1(2), pages 129-146, August.
    13. Rolf Aaberge & Magne Mogstad, 2009. "On the Measurement of Long-Term Income Inequality and Income Mobility," ICER Working Papers 09-2009, ICER - International Centre for Economic Research.
    14. Patrick Moyes, 2007. "An extended Gini approach to inequality measurement," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 5(3), pages 279-303, December.
    15. Aaberge, Rolf, 2001. "Axiomatic Characterization of the Gini Coefficient and Lorenz Curve Orderings," Journal of Economic Theory, Elsevier, vol. 101(1), pages 115-132, November.
    16. Satya Chakravarty, 2007. "A deprivation-based axiomatic characterization of the absolute Bonferroni index of inequality," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 5(3), pages 339-351, December.
    17. John Creedy & S. Subramanian, 2023. "Exploring A New Class of Inequality Measures and Associated Value Judgements: Gini and Fibonacci-Type Sequences," Sankhya B: The Indian Journal of Statistics, Springer;Indian Statistical Institute, vol. 85(1), pages 110-131, May.
    18. I. Josa & A. Aguado, 2020. "Measuring Unidimensional Inequality: Practical Framework for the Choice of an Appropriate Measure," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 149(2), pages 541-570, June.
    19. Aaberge, Rolf, 1997. "Interpretation of changes in rank-dependent measures of inequality," Economics Letters, Elsevier, vol. 55(2), pages 215-219, August.
    20. Duclos, Jean-Yves & Jalbert, Vincent & Araar, Abdelkrim, 2003. "Classical Horizontal Inequity and Reranking: an Integrating Approach," Cahiers de recherche 0306, CIRPEE.

    More about this item

    Keywords

    Gini coefficient; Bonferroni index; Wolfson polarization index; Maximum entropy method;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecolet:v:118:y:2013:i:2:p:370-374. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ecolet .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.