DECOMPOSITION AND NORMALIZATION OF ABSOLUTE DIFFERENCES, WHEN POSITIVE AND NEGATIVE VALUES ARE CONSIDERED:APPLICATIONS TO THE GINI COEFFICIENT

• Authors: Ostasiewicz Katarzyna , Vernizzi Achille
• Languages of publication: EN

Abstracts

EN

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.

Keywords

EN

absolute difference components; negative values; normalization of Gini based coefficients

• Publisher: Katedra Ekonometrii i Statystyki, Szkoła Główna Gospodarstwa Wiejskiego w Warszawie
• Journal: Metody Ilościowe w Badaniach Ekonomicznych
• Year: 2017
• Volume: 18
• Issue: 3
• Pages: 472-491

Contributors

author

Ostasiewicz Katarzyna

• Faculty of Management, Informatics and Finances, Wroclaw University of Economics, Poland

author

Vernizzi Achille

• Department of Economics, Management and Quantitative Methods, Università degli Studi di Milano, Italy

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