Comparison of the Gini and Zenga indexes using some theoretical income distributions abstract
Journal Title: Operations Research and Decisions - Year 2013, Vol 23, Issue 1
Abstract
The most common measure of inequality used in scientific research is the Gini index. In 2007, Zenga proposed a new index of inequality that has all the appropriate properties of an measure of equality. In this paper, we compared the Gini and Zenga indexes, calculating these quantities for the few distributions frequently used for approximating distributions of income, that is, the lognormal, gamma, inverse Gauss, Weibull and Burr distributions. Within this limited examination, we have observed three main differences. First, the Zenga index increases more rapidly for low values of the variation and decreases more slowly when the variation approaches intermediate values from above. Second, the Zenga index seems to be better predicted by the variation. Third, although the Zenga index is always higher than the Gini one, the ordering of some pairs of cases may be inverted.
Authors and Affiliations
Katarzyna Ostasiewicz, Edyta Mazurek
Keywords
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