Francisco José Zamudio Sánchez, Javier Jiménez Machorro, Roxana Arana Ovalle, Hildegardo Martínez Silverio
{"title":"Un índice discreto sensible a la desigualdad","authors":"Francisco José Zamudio Sánchez, Javier Jiménez Machorro, Roxana Arana Ovalle, Hildegardo Martínez Silverio","doi":"arxiv-2409.07538","DOIUrl":null,"url":null,"abstract":"This paper introduces the Relative Inequality Index at the Maximum (IDRM), a\nnovel and intuitive measure designed to capture inequality within a population,\nsuch as income inequality. The index is based on the idea that individuals\nexperience varying levels of inequality depending on their position within the\ndistribution, particularly with respect to those at the top. The key assumption\nis that for individuals in lower positions, inequalities referenced to the top\npositions have greater impact on their well-being and the inequality relative\nto maximum is the most critical. The IDRM fulfills desirable theoretical\nproperties which were used for its evaluation and comparison against widely\naccepted measures in inequality literature. From this perspective, the IDRM is\nshown to be as robust as traditional measures and outperforms the Gini and\nDalton indices by satisfying eight out of nine key properties, including\ndecomposability across population subgroups. In a comparative analysis using\nincome data from 58 countries and microdata from Mexico, with the Gini, Theil,\nand Atkinson indices as benchmarks, the IDRM demonstrates superior consistency,\nsensitivity to inequality, reduced bias in grouped data, and enhanced\nprecision. This index reflects the varying forms of income distribution,\nshowing heightened sensitivity to the magnitude of inequality.","PeriodicalId":501273,"journal":{"name":"arXiv - ECON - General Economics","volume":"9 1","pages":""},"PeriodicalIF":0.0000,"publicationDate":"2024-09-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"arXiv - ECON - General Economics","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/arxiv-2409.07538","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"","JCRName":"","Score":null,"Total":0}
引用次数: 0
Abstract
This paper introduces the Relative Inequality Index at the Maximum (IDRM), a
novel and intuitive measure designed to capture inequality within a population,
such as income inequality. The index is based on the idea that individuals
experience varying levels of inequality depending on their position within the
distribution, particularly with respect to those at the top. The key assumption
is that for individuals in lower positions, inequalities referenced to the top
positions have greater impact on their well-being and the inequality relative
to maximum is the most critical. The IDRM fulfills desirable theoretical
properties which were used for its evaluation and comparison against widely
accepted measures in inequality literature. From this perspective, the IDRM is
shown to be as robust as traditional measures and outperforms the Gini and
Dalton indices by satisfying eight out of nine key properties, including
decomposability across population subgroups. In a comparative analysis using
income data from 58 countries and microdata from Mexico, with the Gini, Theil,
and Atkinson indices as benchmarks, the IDRM demonstrates superior consistency,
sensitivity to inequality, reduced bias in grouped data, and enhanced
precision. This index reflects the varying forms of income distribution,
showing heightened sensitivity to the magnitude of inequality.