Measuring and Explaining Economic Inequality

Author(s):  
C. Chameni Nembua

This chapter proposes a new class of inequality indices based on the Gini coefficient (or index). The properties of the indices are studied and are found to be regular, relative, and to satisfy the Pigou-Dalton transfer principle. A subgroup decomposition is performed, and the method is found to be similar to the one used by Dagum when decomposing the Gini index. The theoretical results are illustrated by case studies, using Cameroonian data.

2019 ◽  
Vol 6 (1) ◽  
pp. 147-173
Author(s):  
Rudolf Schuessler

Abstract What impact should sufficientarianism have on the measurement of inequality? Like other theories of justice, sufficientarianism influences how economic inequality is conceived. For the purpose of measurement, its standards of justice can be approximated by income-based thresholds of sufficiency. At which income level could a threshold of having enough be pegged in OECD countries? What would it imply for standard indicators of inequality, such as decile comparisons of cumulated income, income spreads, or the Gini coefficient? This paper suggests some answers to these questions, showing that sufficientarian ideas could make a difference with respect to the measurement of inequality in a society.


2017 ◽  
Vol 40 (2) ◽  
pp. 205-221 ◽  
Author(s):  
Shahryar Mirzaei ◽  
Gholam Reza Mohtashami Borzadaran ◽  
Mohammad Amini

In this paper, we consider two well-known methods for analysis of the Gini index, which are U-statistics and linearization for some incomedistributions. In addition, we evaluate two different methods for some properties of their proposed estimators. Also, we compare two methods with resampling techniques in approximating some properties of the Gini index. A simulation study shows that the linearization method performs 'well' compared to the Gini estimator based on U-statistics. A brief study on real data supports our findings.


2021 ◽  
Vol 66 (2) ◽  
pp. 16-32
Author(s):  
Grzegorz Przekota ◽  

Determining the level of income inequality requires the adoption of a specific measurement methodology. The aim of the study was to review and discuss the methodologies used to measure income inequality. Four measures are presented, each based on different assumptions. These measures were the Gini coefficient, Theil coefficient, Kukuła coefficient and unevenness coefficient. The first three measures, and in particular the Gini coefficient, are commonly described in the literature, while the unevenness coefficient is the author’s proposal for measuring income inequality. The empirical material for the research consists of data on the distribution of disposable income by decile groups in households in Poland for the years 2005–2017. The most important issue in practice regarding the measurement of income inequality was the transfer principle. Depending on the methodology adopted, the transfer of income is treated differently. The Gini, Theil and Kukula coefficients respond to any change in the income distribution, while the unevenness coefficient only to changes above the average. In a situation where the Gini coefficient (Theil and Kukula) decreases (increases), the level of inequality decreases (increases), but it is not known which transfers led to such a result. The decreasing (growing) unevenness coefficient means that these were transfers from groups with shares in income above (below) the average for groups with shares below (above) the average.


2020 ◽  
Vol 8 ◽  
Author(s):  
Suchismita Banerjee ◽  
Bikas K. Chakrabarti ◽  
Manipushpak Mitra ◽  
Suresh Mutuswami

We provide a survey of the Kolkata index of social inequality, focusing in particular on income inequality. Based on the observation that inequality functions (such as the Lorenz function), giving the measures of income or wealth against that of the population, to be generally nonlinear, we show that the fixed point (like Kolkata index k) of such a nonlinear function (or related, like the complementary Lorenz function) offer better measure of inequality than the average quantities (like Gini index). Indeed the Kolkata index can be viewed as a generalized Hirsch index for a normalized inequality function and gives the fraction k of the total wealth possessed by the rich 1−k fraction of the population. We analyze the structures of the inequality indices for both continuous and discrete income distributions. We also compare the Kolkata index to some other measures like the Gini coefficient and the Pietra index. Lastly, we provide some empirical studies which illustrate the differences between the Kolkata index and the Gini coefficient.


Author(s):  
Bent Greve ◽  
Bent Greve

This chapter focuses on why inequality matters for welfare states, why we should have an interest in this topic, and how this is related to issues of populism and welfare chauvinism. This is done by trying to systematize the knowledge we have on why inequality matters for, and in relation to, economic growth, for health and for social cohesion. It also discusses why trickle-down economics do not work. The development in inequality is analysed by showing the development using traditional aspects such as the Gini coefficient, but also reflecting on, and showing, data on inequality in health and how this can be seen as connected to change in economic inequality.


2021 ◽  
Vol 3 (1) ◽  
pp. 27-34
Author(s):  
Anna Sardiana

The purpose of this study is to analyze and determine the role of banking technology, specifically the use of electronic money in reducing economic inequality in Indonesia. Gini coefficient analysis was used as method in data analysis to measure economic inequality. The data used in the study was secondary data sourced from the Central Statistics Agency (BPS) and Bank Indonesia (BI). The comparison is done using the Gini coefficient calculation method. The results of  analysis in this study indicate that there is an increase that causes economic inequality in Indonesia regarding the use of server-based electronic money. The findings in this study also indicate that chip-based electronic money which is a product of banking technology can reduce the level of economic inequality in Indonesia.


2020 ◽  
Vol 6 (1) ◽  
Author(s):  
Priyo Katon Prasetyo ◽  
Rosye Villanova Christine ◽  
Sudibyanung Sudibyanung

Abstract: Based on Law Number 2 of 2012 concerning Land Acquisition for Development in the Public Interest, the Openness Principle is one of the ten principles as the basis of the implementation of development. This principle is significant because its complex role can lead to conflicts and disputes. In this paper, discussions are divided into two parts: 1) how the implementation is expected to be applied according to the acquisition procedure in theory; and 2) the reality that occurs in the field. The first discussion was conducted by reviewing the applicable regulations and the methods or concepts of development of the openness principle. Meanwhile, the second discussion about the reality on the field was conducted by elaborating case studies regarding problems in land acquisition. The results of this study indicate that there are gaps in the implementation of the openness principle between theory and reality in regards of land scarcity, economic inequality, and information asymmetry among the involved parties. In conclusion, the implementation of the openness principle is significant with the role of information in land acquisition.Intisari: Berdasarkan Undang Undang Nomor 2 Tahun 2012 tentang Pengadaan Tanah Bagi Pembangunan Untuk Kepentingan Umum, Asas Keterbukaan adalah salah satu dari sepuluh asas yang menjadi dasar pelaksanaannya. Asas ini menjadi signifikan karena perannya yang kompleks dapat menimbulkan konflik dan sengketa. Artikel ini akan membagi pembahasan menjadi dua bagian: pertama, bagaimana implementasi yang seharusnya diterapkan pada prosedur pengadaan secara harapan, dan kedua, membahas mengenai realita yang terjadi di lapangan. Secara harapan pembahasan dilakukan dengan melakukan library research atau studi terhadap peraturan yang berlaku dan metode-metode atau prinsip perkembangan dari asas keterbukaan. Realitas di lapangan akan dielaborasi dari studi kasus mengenai permasalahan dalam pengadaan tanah. Hasil dari penelitian ini menunjukkan ada gap dalam implementasi asas keterbukaan antara harapan dan realitas di lapangan yang bersumber dari kelangkaan sumber daya/tanah, ketimpangan ekonomi dan asimetri informasi di antara para pihak yang terlibat. Tulisan ini menyimpulkan bahwa implementasi asas keterbukaan signifikan dengan peran informasi dalam pengadaan tanah. 


Author(s):  
Ross McKibbin

This book is an examination of Britain as a democratic society; what it means to describe it as such; and how we can attempt such an examination. The book does this via a number of ‘case-studies’ which approach the subject in different ways: J.M. Keynes and his analysis of British social structures; the political career of Harold Nicolson and his understanding of democratic politics; the novels of A.J. Cronin, especially The Citadel, and what they tell us about the definition of democracy in the interwar years. The book also investigates the evolution of the British party political system until the present day and attempts to suggest why it has become so apparently unstable. There are also two chapters on sport as representative of the British social system as a whole as well as the ways in which the British influenced the sporting systems of other countries. The book has a marked comparative theme, including one chapter which compares British and Australian political cultures and which shows British democracy in a somewhat different light from the one usually shone on it. The concluding chapter brings together the overall argument.


Medicina ◽  
2021 ◽  
Vol 57 (3) ◽  
pp. 240
Author(s):  
Sarah Humboldt-Dachroeden ◽  
Alberto Mantovani

Background: One Health is a comprehensive and multisectoral approach to assess and examine the health of animals, humans and the environment. However, while the One Health approach gains increasing momentum, its practical application meets hindrances. This paper investigates the environmental pillar of the One Health approach, using two case studies to highlight the integration of environmental considerations. The first case study pertains to the Danish monitoring and surveillance programme for antimicrobial resistance, DANMAP. The second case illustrates the occurrence of aflatoxin M1 (AFM1) in milk in dairy-producing ruminants in Italian regions. Method: A scientific literature search was conducted in PubMed and Web of Science to locate articles informing the two cases. Grey literature was gathered to describe the cases as well as their contexts. Results: 19 articles and 10 reports were reviewed and informed the two cases. The cases show how the environmental component influences the apparent impacts for human and animal health. The DANMAP highlights the two approaches One Health and farm to fork. The literature provides information on the comprehensiveness of the DANMAP, but highlights some shortcomings in terms of environmental considerations. The AFM1 case, the milk metabolite of the carcinogenic mycotoxin aflatoxin B1, shows that dairy products are heavily impacted by changes of the climate as well as by economic drivers. Conclusions: The two cases show that environmental conditions directly influence the onset and diffusion of hazardous factors. Climate change, treatment of soils, water and standards in slaughterhouses as well as farms can have a great impact on the health of animals, humans and the environment. Hence, it is important to include environmental considerations, for example, via engaging environmental experts and sharing data. Further case studies will help to better define the roles of environment in One Health scenarios.


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