Extended Gini Indices of Inequality

Abstract

This paper suggests generalizations of the Gini indices of relative and absolute inequality. The new families of indices are based respect ively on the Lorenz curve and the generalized Lorenz curve. Each inde x is shown to rank income profiles in a given simplex according to so me strictly-concave, social-evaluation function, a property which the Gini indices fail to satisfy. Copyright 1988 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.