The Scope of Inequality Coefficients

  • Arnold H. Q. M. Merkies
Conference paper

Abstract

There are three different interpretations of inequality coefficients: normative measures, descriptive measures and indirect measures. The latter are expressed in the parameters of the distribution of the target variables and offer more scope for control but depend upon the assumed theoretical distribution. Replacing this distribution by another to improve the description of the data affects the properties of the inequality coefficient. This is illustrated in this paper in the case of the income distribution. Distributions with a better fit to the data, sometimes have odd Gini coefficients.

Keywords

Income 

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Copyright information

© Springer-Verlag Berlin · Heidelberg 1994

Authors and Affiliations

  • Arnold H. Q. M. Merkies
    • 1
  1. 1.Dept. of EconometricsFree UniversityAmsterdamNetherlands

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