diff --git a/03-documentation/measures.md b/03-documentation/measures.md new file mode 100644 index 0000000..efc8313 --- /dev/null +++ b/03-documentation/measures.md @@ -0,0 +1,66 @@ +# Measures + +TODO:: separation of shares, inequality indices and ratios + +**absolute** shows magnitude of difference between subgroups of pop -> focus on absolute welfare + +**relative** shows proportional difference between subgroups of pop -> focus on welfare in relation to others + +## Common ones + +### Vertical + +Gini coeff, Theil, entropy measure, atkinson indexes + +### Horizontal + +mean differences between groups; ratios between better off/worse off + +GGini; GTheil; GCOV + + +## All indicators +### Absolute + +* quantiles (division by 5) / deciles (division by 10) / centiles (division by 100) + +* Absolute Gini index + * ? + +* Standard deviation + * deviations from norm in *absolute* terms + +### Relative + + +* ratios of quantiles to each other (division of various quantiles) + +* Gini coefficient: + * based Lorenz curve - population percentage versus accumulated fractions of wealth + * is area between lorenz curve and perfect equality + * needs: individual/household income/wealth; pop size + +* Theil index: + * how much income distribution (person x receives y from total income) is away from perfect uniform distribution + * log -based + * can be disaggregated into subgroups + * Theil L > weighting factors are population groups; Theil T > weighting factors are fraction of appropriated income + +* Atkinson measures: + * measures cumulative deviation of each income in relation to average income value in distribution + +* Palma ratio: + * dividing share of income/wealth held by top 10% by bottom 40%, thus high = bad + +* s80s20, s40s20 ratios: + * ? + +* Concentration index: + * divide whole pop by 100 to find percentiles + * then you know how many ppl are in each group and add their total income + +* Foster-Greer-Thorbecke-class distribution (@Sotomayor2021) + +## Horizontal + +