Comparison of the Gini and Zenga indexes using some theoretical income distributions abstract
Journal Title: Operations Research and Decisions - Year 2013, Vol 23, Issue 1
Abstract
The most common measure of inequality used in scientific research is the Gini index. In 2007, Zenga proposed a new index of inequality that has all the appropriate properties of an measure of equality. In this paper, we compared the Gini and Zenga indexes, calculating these quantities for the few distributions frequently used for approximating distributions of income, that is, the lognormal, gamma, inverse Gauss, Weibull and Burr distributions. Within this limited examination, we have observed three main differences. First, the Zenga index increases more rapidly for low values of the variation and decreases more slowly when the variation approaches intermediate values from above. Second, the Zenga index seems to be better predicted by the variation. Third, although the Zenga index is always higher than the Gini one, the ordering of some pairs of cases may be inverted.
Authors and Affiliations
Katarzyna Ostasiewicz, Edyta Mazurek
Keywords
Related Articles
- EP ID EP165976
- DOI -
- Views 38
- Downloads 0
An application of the representations of symmetric groups to characterizing solutions of games in partition function form
A different perspective from the more “traditional” approaches to studying solutions of games in partition function form has been presented. We provide a decomposition of the space of such games under the action of the s...
On types of responsiveness in the theory of voting
In mathematics, monotonicity is used to denote the nature of the connection between variables. Hence for example, a variable is said to be a monotonically increasing function of another variable if an increase in the val...
Measurement of stock market liquidity supported by an algorithm inferring the initiator of a trade
The aim of this study is to assess and analyse selected liquidity/illiquidity measures derived from high-frequency intraday data from the Warsaw Stock Exchange (WSE). As the side initiating a trade cannot be directly ide...
Theoretical and methodological bases of threats. The method of security management support
A new approach to threat analysis and management of security understood has been presented. Threats have been analyzed in a wide theoretical-methodological range with particular emphasis on the need for the system-wide a...
Two procedures for robust monitoring of probability distributions of economic data stream induced by depth functions
Data streams (streaming data) consist of transiently observed, evolving in time, multidimensional data sequences that challenge our computational and/or inferential capabilities. We propose user friendly approaches for r...