Decomposition and normalization of absolute differences, when positive and negative values are cosidered: applications to the Gini coefficient

Katarzyna Ostasiewicz , Achille Vernizzi

Abstract

We show how the absolute differences approach is particularly effective to interpret the Gini coefficient (G) when a distribution includes both positive and negative values. Either in erasing units having negative values, or in transforming negative values into zero, a significant variability fraction can be lost. When including negative values, instead of correcting G,to maintain it lower than 1, the standard G should be kept to compare the variability among different situations; a recent normalization, Gp, can be associated to G, to evaluate the variability percentage inside each situation.
Author Katarzyna Ostasiewicz (MISaF / IZM / KS)
Katarzyna Ostasiewicz,,
- Katedra Statystyki
, Achille Vernizzi
Achille Vernizzi,,
-
Journal seriesMetody Ilościowe w Badaniach Ekonomicznych, [Quantitative Methods in Economics], ISSN 2082-792X, (B 9 pkt)
Issue year2017
Vol18
No3
Pages472-491
Publication size in sheets0.95
Keywords in Englishabsolute difference components, negative values, normalization of Gini based coefficients
DOIDOI:10.22630/MIBE.2017.18.3.44
URL http://qme.sggw.pl/pdf/MIBE_T18_z3.pdf
Languageen angielski
Score (nominal)9
ScoreMinisterial score = 9.0, 25-04-2019, ArticleFromJournal
Ministerial score (2013-2016) = 9.0, 25-04-2019, ArticleFromJournal
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