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Beyond Inequality: A Novel Measure of Skewness and its Properties

Author

Listed:
  • Walter Kraemer
  • Holger Dette

Abstract

We show that a recent appendix to the Gini-coefficient to make the latter more sensitive to asymmetric income distributions can be viewed as an abstract measure of skewness. We develop some of its properties and apply it to the US-income distribution in 1974 and 2010.

Suggested Citation

  • Walter Kraemer & Holger Dette, 2016. "Beyond Inequality: A Novel Measure of Skewness and its Properties," CESifo Working Paper Series 5972, CESifo.
    • Handle: RePEc:ces:ceswps:_5972
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    File URL: https://www.cesifo.org/DocDL/cesifo1_wp5972.pdf
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    References listed on IDEAS

    as
    1. Whitmore, G A, 1970. "Third-Degree Stochastic Dominance," American Economic Review, American Economic Association, vol. 60(3), pages 457-459, June.
    2. Davies, James & Hoy, Michael, 1995. "Making Inequality Comparisons When Lorenz Curves Intersect," American Economic Review, American Economic Association, vol. 85(4), pages 980-986, September.
    3. Bowden, Roger J., 2016. "Giving Gini direction: An asymmetry metric for economic disadvantage," Economics Letters, Elsevier, vol. 138(C), pages 96-99.
    4. Richard A. Groeneveld & Glen Meeden, 2009. "An improved skewness measure," Metron - International Journal of Statistics, Dipartimento di Statistica, Probabilità e Statistiche Applicate - University of Rome, vol. 0(3), pages 325-337.
    5. Pyatt, Graham, 1976. "On the Interpretation and Disaggregation of Gini Coefficients," Economic Journal, Royal Economic Society, vol. 86(342), pages 243-255, June.
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    Cited by:

    1. Pogorelskiy, Kirill & Traub, Stefan, 2017. "Skewness, Tax Progression, and Demand for Redistribution : Evidence from the UK," CRETA Online Discussion Paper Series 29, Centre for Research in Economic Theory and its Applications CRETA.
    2. Walter Krämer, 2021. "Asymmetry in the distribution of daily stock returns," Empirical Economics, Springer, vol. 60(3), pages 1115-1125, March.

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    More about this item

    Keywords

    inequality; Gini-index; skewness;
    All these keywords.

    JEL classification:

    • C46 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Specific Distributions
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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