A nice estimation of Gini index and power Pen's parade

Jules Sadefo-Kamdem
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Jules Sadefo-Kamdem: LAMETA - Laboratoire Montpelliérain d'Économie Théorique et Appliquée - UM1 - Université Montpellier 1 - UPVM - Université Paul-Valéry - Montpellier 3 - INRA - Institut National de la Recherche Agronomique - Montpellier SupAgro - Centre international d'études supérieures en sciences agronomiques - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier
Authors registered in the RePEc Author Service: Jules SADEFO KAMDEM

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Abstract: Under the assumption that an economic variable y such as income, is a power function of its rank among n individuals, we provide the coefficient of variation and the Gini index as functions of the power degree of the Pen's parade. In fact, knowing the power degree of the Pen's parade function, we obtain the coefficient of variation and a sharp analytical simple way to compute Gini index in terms of the power degree. Reciprocally, knowing, the coefficient of variation of a said variable, we can also provide the power degree of the corresponding Pen's parade, hence deducting its shape. Several examples are given to illustrate our methods. Special attention is given to countries' Gini indices of the World development indicators report 2009 (WDI 2009).

Keywords: Applied econometrics; Development economics; Gini index; Income inequality; Pen's parade; World development indicators (search for similar items in EconPapers)
Date: 2012-07
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Published in Economic Modelling, 2012, 29 (4), pp.1299-1304. ⟨10.1016/j.econmod.2012.03.015⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02901877

DOI: 10.1016/j.econmod.2012.03.015

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