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Socio-economic inequality: Relationship between Gini and Kolkata indices

Author

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  • Chatterjee, Arnab
  • Ghosh, Asim
  • Chakrabarti, Bikas K.

Abstract

Socio-economic inequality is characterized from data using various indices. The Gini (g) index, giving the overall inequality is the most common one, while the recently introduced Kolkata (k) index gives a measure of 1−k fraction of population who possess top k fraction of wealth in the society. Here, we show the relationship between the two indices, using both empirical data and analytical estimates. The significance of their relationship has been discussed.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:phsmap:v:466:y:2017:i:c:p:583-595
    DOI: 10.1016/j.physa.2016.09.027
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    6. Ruz, Soumendra Nath, 2023. "Amazing aspects of inequality indices (Gini and Kolkata Index) of COVID-19 confirmed cases in India," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 632(P2).
    7. Christopher W. Kulp & Michael Kurtz & Charles Hunt & Matthew Velardi, 2023. "The distribution of wealth: an agent-based approach to examine the effect of estate taxation, skill inheritance, and the Carnegie Effect," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 18(2), pages 397-415, April.
    8. Ghosh, Asim & Chakrabarti, Bikas K., 2021. "Limiting value of the Kolkata index for social inequality and a possible social constant," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 573(C).
    9. Banerjee, Suchismita & Chakrabarti, Bikas K. & Mitra, Manipushpak & Mutuswami, Suresh, 2020. "On the Kolkata index as a measure of income inequality," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 545(C).
    10. 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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