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

Direction

Gini coeff, Theil, entropy measure, atkinson indexes

mean differences between groups; ratios between better off/worse off

GGini; GTheil; GCOV

quantiles (division by 5) / deciles (division by 10) / centiles (division by 100)
Absolute Gini index
- ?
Standard deviation
- deviations from norm in absolute terms

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)