measurement of inequality Flashcards
What are the inequality indicies?
- Axion of anonymity
- Axion of populaation
- Axion of scale invariance
- pigou-dalton transfer axion
what are the four main descriptive indicies for measuring inequality?
- range
- variance
- coefficient of variation
- gini
What is the lorenz criterion
Lorenz dominace means a higher gini but a higher gini does not mean lorenz dominance
What are milanovic’s three concepts of inequality?
- unweighted international inequality
- populaiton weighted international inequality
- Global inequality
What does the elephant curve show?
The elephant curve shows the change in income between a time period at various percentiles of the global income distribution
Describe the lottery of citizenship
In 1870: 2/3 of inequlity was based on class. 1/3 was based on location
in 2000: this has reversed.
what is a density function
A density function reports the percentage of the population that falls within a given range.
What is a CDF
A cumulative distribution function gives the proportion of the population who income falls below a certain range
What is a QF
A quantile function is the opposite of the cumulative distribution function. It gives the level of income a proportion of the population fall
Describe the axiom of anonymity
What matter is solely the income of the individual and nothing else.
Describe the axiom of populaiton
Cloning the entire population (and their income) should not alter inequality
Describe the axiom of scale in-variance
Absolute income levels do not carry much meaning, all that matters is the relative difference in their incomes
Describe the Pigou-Dalton transfer axiom
The transfer of income from a relatively poor person to a relatively rich person will make inequality worse. Holding the rank constant.
