The choice of a suitable weight function is a feasible and desirable direction for inequality comparison. This paper proposes a new class of indices based on a ratio of two L-statistics in which the weight function in the numerator involves the expected values of order statistics from a random variable describing the normative attitude to the measurement of inequality. Also, the article describes and discusses a graphical technique, based on the QQ plot, which is useful to select the most appropriate theoretical frequency distribution. A large-scale Monte Carlo study has been conducted to assess the sampling and asymptotic properties of some of a number of inequality indices. The simulations showthat the newclass is able to provide indices that compete well with the traditional measures of income inequality and industrial concentration.
A new class of inequality measures based on ratio of L-Statistics
TARSITANO, Agostino
2004-01-01
Abstract
The choice of a suitable weight function is a feasible and desirable direction for inequality comparison. This paper proposes a new class of indices based on a ratio of two L-statistics in which the weight function in the numerator involves the expected values of order statistics from a random variable describing the normative attitude to the measurement of inequality. Also, the article describes and discusses a graphical technique, based on the QQ plot, which is useful to select the most appropriate theoretical frequency distribution. A large-scale Monte Carlo study has been conducted to assess the sampling and asymptotic properties of some of a number of inequality indices. The simulations showthat the newclass is able to provide indices that compete well with the traditional measures of income inequality and industrial concentration.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
