Aggregation Issues in Inequality Measurement

Abstract

The elementary properties which inequality measures are usually assumed to possess admit a wide variety of specific index forms. In some circumstances, this multiplicity of potential measures does not cause any problem. For instance, if we are only interested in judging whether one distribution has more or less inequality than another, it may be the case that all the indices agree on their ranking. In most applications, however, different indices will lead to different conclusions. It is then necessary to seek criteria that will enable us to discriminate between the admissable alternatives.

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