A note on the relationship between top income shares and the Gini coefficient

When a very top group of the income distribution, infinitesimal in numbers, owns a finite share S of total income, the Gini coefficient G can be approximated by G⁎(1 − S)+S, where G⁎ is the Gini coefficient for the rest of the population. We provide a simple formal proof for this expression, give a...

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Author: Gonzalez Alvaredo, Facundo
Format: article
Status:Published version
Publication Date:2011
Country:Argentina
Institution:Consejo Nacional de Investigaciones Científicas y Técnicas
Repository:CONICET Digital (CONICET)
Language:English
OAI Identifier:oai:ri.conicet.gov.ar:11336/192542
Online Access:http://hdl.handle.net/11336/192542
Access Level:Open access
Keyword:GINI COEFFICIENT
PARETO DISTRIBUTION
TOP INCOME SHARES
https://purl.org/becyt/ford/5.2
https://purl.org/becyt/ford/5
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spelling A note on the relationship between top income shares and the Gini coefficientGonzalez Alvaredo, FacundoGINI COEFFICIENTPARETO DISTRIBUTIONTOP INCOME SHAREShttps://purl.org/becyt/ford/5.2https://purl.org/becyt/ford/5When a very top group of the income distribution, infinitesimal in numbers, owns a finite share S of total income, the Gini coefficient G can be approximated by G⁎(1 − S)+S, where G⁎ is the Gini coefficient for the rest of the population. We provide a simple formal proof for this expression, give a general formula of the relationship when the top group is not infinitesimal, and offer two applications as illustrations.Fil: Gonzalez Alvaredo, Facundo. Universidad Torcuato Di Tella. Instituto "Torcuato Di Tella"; Argentina. University of Oxford; Reino Unido. Consejo Nacional de Investigaciones Científicas y Técnicas; ArgentinaNorth-holland2011-03info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionhttp://purl.org/coar/resource_type/c_6501info:ar-repo/semantics/articuloapplication/pdfapplication/pdfapplication/pdfhttp://hdl.handle.net/11336/192542Gonzalez Alvaredo, Facundo; A note on the relationship between top income shares and the Gini coefficient; North-holland; Economics Letters; 110; 3; 3-2011; 274-2770165-17651873-7374CONICET DigitalCONICETenginfo:eu-repo/semantics/altIdentifier/url/https://www.sciencedirect.com/science/article/pii/S0165176510003460info:eu-repo/semantics/altIdentifier/doi/10.1016/j.econlet.2010.10.008info:eu-repo/semantics/openAccesshttps://creativecommons.org/licenses/by-nc-sa/2.5/ar/reponame:CONICET Digital (CONICET)instname:Consejo Nacional de Investigaciones Científicas y Técnicas2024-05-08T13:56:45Zoai:ri.conicet.gov.ar:11336/192542instacron:CONICETInstitucionalhttp://ri.conicet.gov.ar/Organismo científico-tecnológicoNo correspondehttp://ri.conicet.gov.ar/oai/requestdasensio@conicet.gov.ar; lcarlino@conicet.gov.arArgentinaNo correspondeNo correspondeNo correspondeopendoar:34982024-05-08 13:56:45.485CONICET Digital (CONICET) - Consejo Nacional de Investigaciones Científicas y Técnicasfalse
dc.title.none.fl_str_mv A note on the relationship between top income shares and the Gini coefficient
title A note on the relationship between top income shares and the Gini coefficient
spellingShingle A note on the relationship between top income shares and the Gini coefficient
Gonzalez Alvaredo, Facundo
GINI COEFFICIENT
PARETO DISTRIBUTION
TOP INCOME SHARES
https://purl.org/becyt/ford/5.2
https://purl.org/becyt/ford/5
title_short A note on the relationship between top income shares and the Gini coefficient
title_full A note on the relationship between top income shares and the Gini coefficient
title_fullStr A note on the relationship between top income shares and the Gini coefficient
title_full_unstemmed A note on the relationship between top income shares and the Gini coefficient
title_sort A note on the relationship between top income shares and the Gini coefficient
dc.creator.none.fl_str_mv Gonzalez Alvaredo, Facundo
author Gonzalez Alvaredo, Facundo
author_facet Gonzalez Alvaredo, Facundo
author_role author
dc.subject.none.fl_str_mv GINI COEFFICIENT
PARETO DISTRIBUTION
TOP INCOME SHARES
https://purl.org/becyt/ford/5.2
https://purl.org/becyt/ford/5
topic GINI COEFFICIENT
PARETO DISTRIBUTION
TOP INCOME SHARES
https://purl.org/becyt/ford/5.2
https://purl.org/becyt/ford/5
description When a very top group of the income distribution, infinitesimal in numbers, owns a finite share S of total income, the Gini coefficient G can be approximated by G⁎(1 − S)+S, where G⁎ is the Gini coefficient for the rest of the population. We provide a simple formal proof for this expression, give a general formula of the relationship when the top group is not infinitesimal, and offer two applications as illustrations.
publishDate 2011
dc.date.none.fl_str_mv 2011-03
dc.type.none.fl_str_mv info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
http://purl.org/coar/resource_type/c_6501
info:ar-repo/semantics/articulo
format article
status_str publishedVersion
dc.identifier.none.fl_str_mv http://hdl.handle.net/11336/192542
Gonzalez Alvaredo, Facundo; A note on the relationship between top income shares and the Gini coefficient; North-holland; Economics Letters; 110; 3; 3-2011; 274-277
0165-1765
1873-7374
CONICET Digital
CONICET
url http://hdl.handle.net/11336/192542
identifier_str_mv Gonzalez Alvaredo, Facundo; A note on the relationship between top income shares and the Gini coefficient; North-holland; Economics Letters; 110; 3; 3-2011; 274-277
0165-1765
1873-7374
CONICET Digital
CONICET
dc.language.none.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv info:eu-repo/semantics/altIdentifier/url/https://www.sciencedirect.com/science/article/pii/S0165176510003460
info:eu-repo/semantics/altIdentifier/doi/10.1016/j.econlet.2010.10.008
dc.rights.none.fl_str_mv info:eu-repo/semantics/openAccess
https://creativecommons.org/licenses/by-nc-sa/2.5/ar/
eu_rights_str_mv openAccess
rights_invalid_str_mv https://creativecommons.org/licenses/by-nc-sa/2.5/ar/
dc.format.none.fl_str_mv application/pdf
application/pdf
application/pdf
dc.publisher.none.fl_str_mv North-holland
publisher.none.fl_str_mv North-holland
dc.source.none.fl_str_mv reponame:CONICET Digital (CONICET)
instname:Consejo Nacional de Investigaciones Científicas y Técnicas
instname_str Consejo Nacional de Investigaciones Científicas y Técnicas
reponame_str CONICET Digital (CONICET)
collection CONICET Digital (CONICET)
repository.name.fl_str_mv CONICET Digital (CONICET) - Consejo Nacional de Investigaciones Científicas y Técnicas
repository.mail.fl_str_mv dasensio@conicet.gov.ar; lcarlino@conicet.gov.ar
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