Unit‐Consistent Decomposable Inequality Measures

Dados Bibliográficos

ID9724286
AutoresBuhong Zheng (0000-0001-6616-1147, University of Colorado Denver, autor correspondente)
Ano2007
Volume74
Fascículo293
Páginas97-111
Data de publicação2007-02-01
Peer ReviewedSim
Open AccessSim
TipoARTICLE
PeriódicoEconomica (JOURNAL)
Identificadores do periódicoISSN: 0013-0427 • E-ISSN: 1468-0335
EditoraWiley (PUBLISHER • GB)
DOI10.1111/j.1468-0335.2006.00524.x
OpenAlexW2084576437
IdiomaEN
Citações recebidas14
Referências citadas16

This paper introduces a new axiom—the unit consistency axiom—into inequality measurement. This new axiom requires the ordinal inequality rankings (rather than the cardinal indices) to be unaffected when incomes are expressed in different units. I argue that unit consistency is an indispensable axiom for the measurement of income inequality. When unit consistency is combined with decomposability, I show that the unit‐consistent decomposable class of inequality measures is a two‐parameter extension of the one‐parameter generalized entropy class. The extended class accommodates a variety of value judgments and includes different types of inequality measures

Axiom · Axiom independence · Class (philosophy) · Consistency (knowledge bases) · Data mining · Discrete mathematics · Econometrics · Entropy (arrow of time) · Extension (predicate logic) · Inequality · Log sum inequality · Mathematical analysis · Mathematical economics · Measure (data warehouse) · Unit (ring theory) · Computer Science · Economic theories and models · Income, Poverty, and Inequality · Mathematics · Social and Economic Development in India