Comparisons Between Poorest and Richest to Measure Inequality

2018 ◽  
Vol 49 (2) ◽  
pp. 526-561 ◽  
Author(s):  
Youri Davydov ◽  
Francesca Greselin

The observed increase in economic inequality, where the major concern is relative to the huge growth of the highest incomes, motivates to revisit classical measures of inequality and to offer new ways to synthesize the variability of the entire income distribution. The idea is to provide policy makers a way to contrast the economic position of the group of the poorer [Formula: see text] percent of the population and to compare their mean income to the one owned by the [Formula: see text] percent of the richest. The new measure is still a Lorenz-based one, but the significant focus is based here in equally sized and opposite parts of the population whose difference is so remarkable nowadays. We then highlight the specific information given by the new inequality measure and curve, by comparing it to the widely employed Lorenz curve and Gini index and the more recent Zenga approach, and provide an application to Italian data on household income, wealth, and consumption along the years 1980–2012. The effects of estimating inequality indices and curves from grouped data are also discussed.

Econometrica ◽  
1976 ◽  
Vol 44 (3) ◽  
pp. 479 ◽  
Author(s):  
Joseph L. Gastwirth ◽  
Marcia Glauberman

2016 ◽  
Vol 70 (1) ◽  
pp. 25-32 ◽  
Author(s):  
Merritt Lyon ◽  
Li C. Cheung ◽  
Joseph L. Gastwirth

Agro Ekonomi ◽  
2016 ◽  
Vol 25 (1) ◽  
Author(s):  
Retno Wiji Gupito ◽  
Irham Irham ◽  
Lestari Rahayu Waluyati

The objective of this study are : (1) to understand about the contribution of sorghum farming income to total household income, (2) factors that influence sorghum farming income, and (3) income distribution level of sorghum farmers in Gunungkidul Regency.The basic methodused in this studyis descriptive-analytic. Sampling method used in this study is purposive sampling. The data weretaken from 30 farmers in study area. The data was collected by an interview,questionnaires and literatures study case.In order to learn the several factors influencing income level, isused multiple linear regression method.On the other hand,the level of total income distribution of sorghum farmerswas analylizedby using Gini Ratio and Lorenz Curve. The results of this study showsthat shorgum farming incomecontributes 2% for total farmers income. This study also show that sorghum farming does not cause inequality income in the study area. Several factorsthat affect sorghum farmers income positively are the land size and seed prices.


2009 ◽  
pp. 49
Author(s):  
Maria Monti ◽  
Alessandro Santoro

This Note belongs to the recent literature emphasizing that the residual in the traditional Gini index decomposition reveals more than what is commonly believed. We show that the residual reveals the so far unexplored contribution of stratification to between-group inequality, and this suggests that the between-group inequality measure should be modified accordingly. We propose a measure of between-group inequality which is a function of stratification. This is our first result. Moreover, we show that this measure is numerically equivalent to the one suggested by Yitzhaki and Lerman (1991), yet, contrary to the latter, we are able to define precisely its range of variation. This is our second result. Both results are illustrated by analysing between-group inequality and stratification among Italian households.


Author(s):  
Thitithep Sitthiyot ◽  
Kanyarat Holasut

AbstractGiven many popular functional forms for the Lorenz curve do not have a closed-form expression for the Gini index and no study has utilized the observed Gini index to estimate parameter(s) associated with the corresponding parametric functional form, a simple method for estimating the Lorenz curve is introduced. It utilizes three indicators, namely, the Gini index and the income shares of the bottom and the top in order to calculate the values of parameters associated with the specified functional form which has a closed-form expression for the Gini index. No error minimization technique is required in order to estimate the Lorenz curve. The data on the Gini index and the income shares of four countries that have a different level of income inequality, economic, sociological, and regional backgrounds from the United Nations University-World Income Inequality Database are used to illustrate how the simple method works. The overall results indicate that the estimated Lorenz curves fit the actual observations practically well. This simple method could be useful in the situation where the availability of data on income distribution is low. However, if more data on income distribution are available, this study shows that the specified functional form could be used to directly estimate the Lorenz curve. Moreover, the estimated values of the Gini index calculated based on the specified functional form are virtually identical to their actual observations.


Author(s):  
. Nasir ◽  
Imron Zahri ◽  
Andy Mulyana ◽  
. Yunita

The purpose of this study are: (1) to determine the structure of the household income of rice farmers in lowland swamp land, and (2) to determine the distribution of household income of farmers in various typologies lebak.Penelitian wetlands was held in Ogan Ilir and Ogan Ogan Ilir in March until May 2013. Sampling technique is simple random sample of 222 farmers, or 10.5 percent of 2,111 respondents used in this research. These respondents were divided into 3 groups: farmers who cultivate land swampy marsh embankment, mid and deep. The method used is a survey method. Data collected consist of primary and secondary data. The structure of household income farmers viewed from the contribution of a business on total household income, while the income distribution is calculated using Gini index. The results showed the contribution of household income on lebak dikes and in largely derived from non farming, to contribute to the embankment of lebak by 63.62% and amounted to 48.43% in the lowland, while in the mid lebak largely derived from rice farming with a contribution of 70.03%. The distribution of household income in the three types of inequality lebak almost evenly with relatively low because it has a Gini index of less than 0.4.Keywords: contribution, distribution, revenue


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