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Axiomatic characterization of the Gini coefficient and Lorenz

Author

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  • Rolf Aaberge

Abstract

This paper is concerned with distributions of income and the ordering of related Lorenz curves. By introducing appropriate preference relations on the set of Lorenz curves, two altenative axiomatic characterization of Lorenz curve orderings are proposed. Moreover, the Gini coefficient is recognized to be rationalizable under both axiom sets; as a result, a complete axiomatic characterization of the Gini coefficient is ontained. Furthermore, axiomatic charactherizations of the extended Gini family and an alternative "generalized" Gini family of inequality measures are proposed.

Suggested Citation

  • Rolf Aaberge, 2000. "Axiomatic characterization of the Gini coefficient and Lorenz," ICER Working Papers 06-2000, ICER - International Centre for Economic Research.
    • Handle: RePEc:icr:wpicer:06-2000
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    File URL: http://www.bemservizi.unito.it/repec/icr/wp2000/Aaberge62000.pdf
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    Citations

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    Cited by:

    1. Peter Lambert, & Giuseppe Lanza, 2003. "The effect on inequality of changing one or two incomes," IFS Working Papers W03/15, Institute for Fiscal Studies.
    2. Miguel Sordo & Jorge Navarro & José Sarabia, 2014. "Distorted Lorenz curves: models and comparisons," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 42(4), pages 761-780, April.

    More about this item

    Keywords

    Lorenz curve orderings; axiomatic characterization; measures of inequality; the Gini coefficient;
    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

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