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Gini index, inequality comparisons and maximim axiom : a paradox

Author

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  • Louis de Mesnard

    (LATEC - Laboratoire d'Analyse et de Techniques Economiques [UMR 5118] - UB - Université de Bourgogne - CNRS - Centre National de la Recherche Scientifique)

Abstract

Inequality is appreciated only through a relevant measure, traditionally the Gini index, but this one presents a weakness that prevents to consider it as valid: to a same Gini may correspond many distributions. For the most simple case, a concentration curve with two linear segments, a criterion is proposed, based on the maximin: beside curves with same Gini, the more egalitarian is those in which each poor has the higher revenue. However, this does not allow to decide for two curves with different Gini: two indeterminate zones appear. This is extended to curves with three linear segments and two kinks.

Suggested Citation

  • Louis de Mesnard, 1999. "Gini index, inequality comparisons and maximim axiom : a paradox," Working Papers hal-01526991, HAL.
    • Handle: RePEc:hal:wpaper:hal-01526991
    Note: View the original document on HAL open archive server: https://hal.science/hal-01526991
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    Keywords

    economics; economic theory; humanities social sciences; sciences humaines et sociales;
    All these keywords.

    JEL classification:

    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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