Measuring and Explaining Economic Inequality: An Extension of the Gini Coefficient

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Author(s): C. Chameni Nembua (University of Yaoundé II, Cameroon)
Copyright: 2014
Pages: 15
Source title: Econometric Methods for Analyzing Economic Development
Source Author(s)/Editor(s): Peter V. Schaeffer (West Virginia University, USA)and Eugene Kouassi (University of Cocody, Cote d'Ivoire)
DOI: 10.4018/978-1-4666-4329-1.ch006

Keywords: Business Science Reference / Data Analysis & Statistics / Economics and Economic Theory / Library & Information Science

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Abstract

This chapter proposes a new class of inequality indices based on the Gini coefficient (or index). The properties of the indices are studied and are found to be regular, relative, and to satisfy the Pigou-Dalton transfer principle. A subgroup decomposition is performed, and the method is found to be similar to the one used by Dagum when decomposing the Gini index. The theoretical results are illustrated by case studies, using Cameroonian data.

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Measuring and Explaining Economic Inequality: An Extension of the Gini Coefficient

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