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Reference distributions and inequality measurement

Cowell, Frank A., Flachaire, Emmanuel and Bandyopadhyay, Sanghamitra (2013) Reference distributions and inequality measurement. The Journal of Economic Inequality, 11 (4). pp. 421-437. ISSN 1569-1721

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Abstract

We investigate a general problem of comparing pairs of distributions which includes approaches to inequality measurement, the evaluation of "unfair" income inequality, evaluation of inequality relative to norm incomes, and goodness of fit. We show how to represent the generic problem simply using (1) a class of divergence measures derived from a parsimonious set of axioms and (2) alternative types of "reference distributions." The problems of appropriate statistical implementation are discussed and empirical illustrations of the technique are provided using a variety of reference distributions.

Item Type: Article
Official URL: http://link.springer.com/journal/10888
Additional Information: © 2013 Springer Science+Business Media New York
Library of Congress subject classification: H Social Sciences > HB Economic Theory
Journal of Economic Literature Classification System: C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods: General > C10 - General
D - Microeconomics > D6 - Welfare Economics > D63 - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
Sets: Departments > Economics
Collections > Economists Online
Research centres and groups > Suntory and Toyota International Centres for Economics and Related Disciplines (STICERD)
Research centres and groups > Centre for Analysis of Social Exclusion (CASE)
Rights: http://www.lse.ac.uk/library/usingTheLibrary/academicSupport/OA/depositYourResearch.aspx
Date Deposited: 20 Feb 2013 11:26
URL: http://eprints.lse.ac.uk/48761/

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