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We provide a simple proof of Foster's (1983) characterization of the Theil inequality index.
Persistent link: https://www.econbiz.de/10010719386
We axiomatically characterize the Theil ordering of income inequality. In addition to the uncontroversial axioms of anonymity, homogeneity, replication invariance, strong directedness, and a standard continuity property, we appeal to both an independence and a decomposability axioms. These two...
Persistent link: https://www.econbiz.de/10010728080
We identify an ordinal decomposability property and use it, along with other ordinal axioms, to characterize the Theil inequality ordering.
Persistent link: https://www.econbiz.de/10009367396
We provide a simple proof of Foster's (1983) characterization of the Theil inequality index.
Persistent link: https://www.econbiz.de/10011272239
It is possible to partially order cities with two ethnic groups according to the Lorenz criterion. Similarly, it is possible to partially order cities according to the informativeness of neighborhoods about the ethnic groups of its inhabitants. We show the equivalence of these two orders for the...
Persistent link: https://www.econbiz.de/10011272258
Measuring the extent to which distribution is polarized has recently attracted some attention from economists. Polarization, though related to inequality, is a different concept and implies a tendency towards clustering of observations into groups. It is of interest because it may be related to...
Persistent link: https://www.econbiz.de/10010733894
In several economic fields, such as those related to health or education, the individuals’ characteristics are measured by bounded variables. Accordingly, these characteristics may be indistinctly represented by achievements or shortfalls. A difficulty arises when inequality needs to be...
Persistent link: https://www.econbiz.de/10010870851
This paper emphasizes the properties of a family of inequality measures which extends the Atkinson indices and is axiomatically characterized by a multiplicative decomposition property where the withingroup component is a generalized weighted mean with weights summing exactly to 1. This family...
Persistent link: https://www.econbiz.de/10010720149
This paper identifies a multiplicative decomposition for the Foster-Greer-Thorbecke poverty indices as a product of the three components which should be involved in every poverty index: the incidence of poverty, measured by the headcount ratio, the intensity of poverty, measured by the aggregate...
Persistent link: https://www.econbiz.de/10005413385
An income inequality measure satisfies the Pigou-Dalton transfer principle if progressive transfers decrease income inequality. When transfers cause transaction costs, one can trace out the maximum leakage such that the transfer pays at the margin. An income inequality measure is leaky-bucket...
Persistent link: https://www.econbiz.de/10005413403