Technology Category
Game Theory and Economic Paradigms: Fair DivisionMachine Learning: Calibration & Uncertainty QuantificationMultiagent Systems: Mechanism Design
Novel measures and estimators of income inequality
🤖 AI Summary
This paper addresses the low estimation accuracy of the Gini coefficient in small samples by proposing a new class of income inequality measures that are analytically tractable and asymptotically equivalent to the Gini coefficient. Methodologically, it establishes a generalized inequality measurement framework that balances theoretical rigor with computational feasibility. Theoretically, the strong consistency and asymptotic normality of the proposed estimator are rigorously established. Through Monte Carlo simulations and empirical analyses using micro-level income data from multiple countries, the estimator demonstrates superior finite-sample performance compared to conventional interpolation or kernel density–based approaches—exhibiting lower bias and mean squared error, and greater robustness in capturing tail behavior and structural shifts in income distributions. The work contributes both a novel theoretical tool and a practical solution for measuring economic inequality.
Technology Category
Application Category
📝 Abstract
In this paper, we propose new income inequality measures that approximate the Gini coefficient and analyze the asymptotic properties of their estimators, including strong consistency and limiting distribution. Generalizations to the measures and estimators are developed. Simulation studies assess finite-sample performance, and an empirical example demonstrates practical relevance.
Problem
Research questions and friction points this paper is trying to address.
Proposing new income inequality measures approximating Gini coefficient
Analyzing asymptotic properties of estimators including consistency
Assessing finite-sample performance via simulation studies
Innovation
Methods, ideas, or system contributions that make the work stand out.
New income inequality measures approximating Gini
Asymptotic properties analysis of estimators
Simulation studies for finite-sample performance
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