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Measuring Inequality: On the Correlation Between Indices

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  • Paolo Figini

Abstract

A preliminary step in the measurement of inequality regards the choice of the index to use. Several indices exist, each one responding to a built-in aversion to inequality, and the choice affects conclusions. But how much? And in which way? We test the ranking correlation between inequality indices, by drawing a distinction between cases involving non-intersecting and intersecting Lorenz curves.

Suggested Citation

  • Paolo Figini, 2000. "Measuring Inequality: On the Correlation Between Indices," LIS Working papers 229, LIS Cross-National Data Center in Luxembourg.
    • Handle: RePEc:lis:liswps:229
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    1. Timothy Smeeding & Gunther Schmaus & Brigitte Buhmann & Lee Rainwater, 1988. "Equivalence Scales, Well-Being, Inequality and Poverty: Sensitivity Estimates Across Ten Countries Using the LIS Database," LIS Working papers 17, LIS Cross-National Data Center in Luxembourg.
    2. Fields, Gary S & Fei, John C H, 1978. "On Inequality Comparisons," Econometrica, Econometric Society, vol. 46(2), pages 303-316, March.
    3. Brigitte Buhmann & Lee Rainwater & Guenther Schmaus & Timothy M. Smeeding, 1988. "Equivalence Scales, Well‐Being, Inequality, And Poverty: Sensitivity Estimates Across Ten Countries Using The Luxembourg Income Study (Lis) Database," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 34(2), pages 115-142, June.
    4. Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
    5. repec:bla:revinw:v:34:y:1988:i:2:p:115-42 is not listed on IDEAS
    6. Sen, Amartya, 1973. "On Economic Inequality," OUP Catalogue, Oxford University Press, number 9780198281931.
    7. Champernowne, D G, 1974. "A Comparison of Measures of Inequality of Income Distribution," Economic Journal, Royal Economic Society, vol. 84(336), pages 787-816, December.
    8. repec:bla:econom:v:58:y:1991:i:232:p:461-77 is not listed on IDEAS
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    Cited by:

    1. Victoria Giarrizzo, 2009. "Subjective economic welfare: Beyond growth," Economía, Instituto de Investigaciones Económicas y Sociales (IIES). Facultad de Ciencias Económicas y Sociales. Universidad de Los Andes. Mérida, Venezuela, vol. 34(28), pages 9-34, july-dece.
    2. Clemens Tesch-Römer & Andreas Motel-Klingebiel & Martin Tomasik, 2008. "Gender Differences in Subjective Well-Being: Comparing Societies with Respect to Gender Equality," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 85(2), pages 329-349, January.
    3. Emma Samman, 2005. "Gini Coefficients for Subsidy Distribution in Agriculture," Human Development Occasional Papers (1992-2007) HDOCPA-2005-35, Human Development Report Office (HDRO), United Nations Development Programme (UNDP).

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