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New Unit-Consistent Intermediate Inequality Indices

Author

Listed:
  • Coral del Río

    (Universidade de Vigo)

  • Olga Alonso-Villar

    (Universidade de Vigo)

Abstract
This paper introduces a class of intermediate inequality indices, I(?, ?), that is at the same time ray-invariant and unit-consistent. These measures permit us to keep some of the good properties of Krtscha’s (1994) index while keeping the same “centrist” attitude whatever the income increase is. In doing so, we approach the intermediate inequality concept suggested by Del Río and Ruiz-Castillo (2000) and generalize it in order to extend the range of income distributions which are comparable according to the ray-invariance criterion..

Suggested Citation

  • Coral del Río & Olga Alonso-Villar, 2007. "New Unit-Consistent Intermediate Inequality Indices," Working Papers 63, ECINEQ, Society for the Study of Economic Inequality.
    • Handle: RePEc:inq:inqwps:ecineq2007-63
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    File URL: http://www.ecineq.org/milano/WP/ECINEQ2007-63.pdf
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    References listed on IDEAS

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    1. Thibault Gajdos & John Weymark, 2005. "Multidimensional generalized Gini indices," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 26(3), pages 471-496, October.
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    3. Kolm, Serge-Christophe, 1976. "Unequal inequalities. I," Journal of Economic Theory, Elsevier, vol. 12(3), pages 416-442, June.
    4. Buhong Zheng, 2007. "Unit-Consistent Poverty Indices," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 31(1), pages 113-142, April.
    5. Claudio Zoli, 2012. "Characterizing Inequality Equivalence Criteria," Working Papers 32/2012, University of Verona, Department of Economics.
    6. Satya Chakravarty, 2001. "The Variance as a subgroup decomposable measure of inequality," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 53(1), pages 79-95, January.
    7. Satya Chakravarty & Swami Tyagarupananda, 2009. "The subgroup decomposable intermediate indices of inequality," Spanish Economic Review, Springer;Spanish Economic Association, vol. 11(2), pages 83-97, June.
    8. Buhong Zheng, 2007. "Inequality orderings and unit consistency," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 29(3), pages 515-538, October.
    9. Bossert, Walter & Pfingsten, Andreas, 1990. "Intermediate inequality: concepts, indices, and welfare implications," Mathematical Social Sciences, Elsevier, vol. 19(2), pages 117-134, April.
    10. Coral del RÎo & Javier Ruiz-Castillo, 2000. "Intermediate inequality and welfare," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 17(2), pages 223-239.
    11. Ernesto Savaglio, 2006. "Multidimensional inequality with variable population size," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 28(1), pages 85-94, May.
    12. Tateo Yoshida, 2005. "Social welfare rankings of income distributions A new parametric concept of intermediate inequality," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 24(3), pages 557-574, June.
    13. Seidl, Christian & Theilen, Bernd, 1994. "Stochastic independence of distributional attitudes and social status : A comparison of German and Polish data," European Journal of Political Economy, Elsevier, vol. 10(2), pages 295-310, July.
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    Citations

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    Cited by:

    1. Paul Allanson & Dennis Petrie, 2014. "Understanding The Vertical Equity Judgements Underpinning Health Inequality Measures," Health Economics, John Wiley & Sons, Ltd., vol. 23(11), pages 1390-1396, November.
    2. Ramses H. Abul Naga, 2018. "Measurement of inequality with a finite number of pay states: the majorization set and its applications," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 65(1), pages 99-123, January.
    3. Francisco Azpitarte & Olga Alonso-Villar, 2011. "Ray-invariant intermediate inequality measures: A Lorenz dominance criterion," Working Papers 226, ECINEQ, Society for the Study of Economic Inequality.
    4. S. Subramanian, 2015. "Assessing Inequality in the Presence of Growth: an Expository Essay," The Review of Black Political Economy, Springer;National Economic Association, vol. 42(3), pages 179-199, September.
    5. Subbu Subramanian, 2014. "Dividing a cake (or) Distributional values in the measurement of economic inequality: an expository note," The Journal of Philosophical Economics, Bucharest Academy of Economic Studies, The Journal of Philosophical Economics, vol. 7(2), May.
    6. Casilda Lasso de la Vega & Ana Urrutia & Oscar Volij, 2013. "An axiomatic characterization of the Theil inequality ordering," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 54(3), pages 757-776, November.
    7. Satya Chakravarty & Swami Tyagarupananda, 2009. "The subgroup decomposable intermediate indices of inequality," Spanish Economic Review, Springer;Spanish Economic Association, vol. 11(2), pages 83-97, June.
    8. Francisco Azpitarte & Olga Alonso-Villar, 2012. "A Dominance Criterion for Measuring Income Inequality from a Centrist View: The Case of Australia," Melbourne Institute Working Paper Series wp2012n03, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.

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    More about this item

    Keywords

    Income distribution; Intermediate inequality indices; Unit-consistency; Ray-invariance.;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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