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Article . 2025 . Peer-reviewed
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Research . 2025
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Research . 2025
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A Demarcation of the Gini Coefficient

Authors: Stark, Oded; Kosiorowski, Grzegorz;

A Demarcation of the Gini Coefficient

Abstract

We specify the domain in the income distribution that includes the people to whom income transfers will not increase inequality in that income distribution. Inspired by Sen's (1973, 1997) characterization of the Gini coefficient as a ratio between a measure of aggregate income-based "depression" (stress) and aggregate income, we inquire as to whether in the wake of an increase of an income or of incomes in a given income distribution, the Gini coefficient does not increase. To this end, we identify the corresponding "safe" domain and show that the pivotal value that demarcates this domain can be elicited from a simple linear function of the Gini coefficient itself. Our rule of demarcation provides for policy interventions that seek to increase a particular income or particular incomes while not exacerbating inequality in the income distribution as measured by the Gini coefficient.

Keywords

I38, sufficient condition for the Gini coefficient not to increase, aggregate income, ddc:330, Rank-preserving increase of an income or incomes, aggregate income-based stress, Aggregate income, rank-preserving increase of an income or incomes, Sufficient condition for the Gini coefficient not to increase, P46, Gini coefficient, pivotal value, Pivotal value, H53, Aggregate income-based stress, I31, H11, D63, C43, D31

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
0
Average
Average
Average
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