scholarly journals The Lorenz Curve: A Proper Framework to Define Satisfactory Measures of Symbol Dominance, Symbol Diversity, and Information Entropy

Entropy ◽  
2020 ◽  
Vol 22 (5) ◽  
pp. 542
Author(s):  
Julio A. Camargo

Novel measures of symbol dominance (dC1 and dC2), symbol diversity (DC1 = N (1 − dC1) and DC2 = N (1 − dC2)), and information entropy (HC1 = log2 DC1 and HC2 = log2 DC2) are derived from Lorenz-consistent statistics that I had previously proposed to quantify dominance and diversity in ecology. Here, dC1 refers to the average absolute difference between the relative abundances of dominant and subordinate symbols, with its value being equivalent to the maximum vertical distance from the Lorenz curve to the 45-degree line of equiprobability; dC2 refers to the average absolute difference between all pairs of relative symbol abundances, with its value being equivalent to twice the area between the Lorenz curve and the 45-degree line of equiprobability; N is the number of different symbols or maximum expected diversity. These Lorenz-consistent statistics are compared with statistics based on Shannon’s entropy and Rényi’s second-order entropy to show that the former have better mathematical behavior than the latter. The use of dC1, DC1, and HC1 is particularly recommended, as only changes in the allocation of relative abundance between dominant (pd > 1/N) and subordinate (ps < 1/N) symbols are of real relevance for probability distributions to achieve the reference distribution (pi = 1/N) or to deviate from it.

Ekonomia ◽  
2020 ◽  
Vol 26 (2) ◽  
pp. 9-18
Author(s):  
Magdalena Skolimowska-Kulig

In the paper the notion of excess wealth transform and stochastic partial order based on it, introduced by Shaked and Shanthikumar (1998) are considered. The relations of the transform with the Lorenz curve and with certain variability measures are presented. The excess wealth transforms for Pareto type probability distributions are derived and their point-wise comparison is studied.


Author(s):  
Loek Groot

In this study it is demonstrated that standard income inequality measures, such as the Lorenz curve and the Gini index, can successfully be applied to the distribution of Olympic success. Olympic success is distributed very unevenly, with the rich countries capturing a disproportionately higher share compared to their world population share, which suggests that the Olympic Games do not provide a level playing field. The actual distribution of Olympic success is compared with alternative hypothetical distributions, among which are chosen the distribution according to population shares, the welfare optimal distribution under the assumption of zero government expenditures, and the non-cooperating Nash-Cournot distribution. By way of conclusion, a device is proposed to make the distribution of Olympic success more equitable.


Econometrica ◽  
1984 ◽  
Vol 52 (5) ◽  
pp. 1313 ◽  
Author(s):  
Manash Ranjan Gupta

2016 ◽  
Vol 10 (2) ◽  
pp. 1896-1926 ◽  
Author(s):  
Luke A. Prendergast ◽  
Robert G. Staudte

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

Sign in / Sign up

Export Citation Format

Share Document