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Abstract
In this paper, we estimate aversion to rank inequality (ATRI) underlying selected Italian income inequality indices, I, notably the Pietra index, the Bonferroni index and the “new” Zenga index. We measure ATRI by the parameter v of the generalised Gini index G(v). ATRI is distinct from aversion to income inequality, as measured by parameter ε of Atkinson’s index A(ε). We propose eliciting v from the equation I = GE(v). As, in general, an analytical solution to this equality can be cumbersome, we retrieve v from the empirical equation Iˆ = Gˆ (v) where the symbols Iˆ and Gˆ (v) denote the estimates of I and G(v), respectively. We also calculate the benchmark income x* such that adding a small income to it does not affect inequality. In this paper, we solve the equation using the estimates of the Italian inequality indices for Poland from 2000 to 2017. We have found, on average, v≈1.5 for the Pietra index, v ≈ 3 for the Bonferroni index, and v ≈ 11 for the Zenga index.
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- Accepted or Published Version
- DOI:
- Digital Object Identifier (open in new tab) 1026350/999999_000052
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- Category:
- Articles
- Type:
- artykuły w czasopismach
- Published in:
-
Statistica e Applicazioni
no. XX,
pages 7 - 19,
ISSN: 1824-6672 - Language:
- English
- Publication year:
- 2022
- Bibliographic description:
- Kot S.: ESTIMATING AVERSION TO RANK INEQUALITY UNDERLYING SELECTED ITALIAN INDICES OF INCOME INEQUALITY// Statistica e Applicazioni -Vol. XX,iss. 1 (2023), s.7-19-
- DOI:
- Digital Object Identifier (open in new tab) 1026350/999999_000052
- Sources of funding:
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- Free publication
- Verified by:
- Gdańsk University of Technology
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