This paper establishes the principles which should govern the welfare and inequality analysis of heterogeneous income …. However, inequality and welfare comparisons will usually be well defined only if equivalent incomes are obtained using … constant scale factors; and researchers will need to distinguish clearly between inequality of nominal incomes and inequality …

We describe a new method of facilitating inequality and poverty analysis of grouped distributional data by allowing … counterparts, then by comparing the true and generated values of the Gini coefficient and other inequality indices. The results …