The Asymptotic Distribution of the Generalized Gini Indices of Inequality

Garry Barrett and Krishna Pendakur

Canadian Journal of Economics, 1995, vol. 28, issue 4b, 1042-55

Abstract: This paper presents the asymptotic distributions of the S-Gini and E-Gini relative and absolute indices of inequality. The generalized Gini indices are defined in terms of Lorenz ordinates and results on the asymptotic covariance matrix of Lorenz ordinates are used to derive the large sample properties of the indices. The methods are illustrated by examining changes in the distribution of nondurable consumption in Canada over the 1980s. The authors find that inequality was lower in 1972 and 1990 than in 1984. Over the entire data period, relative inequality was either static or increased slightly, while absolute inequality declined.

Date: 1995
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