In search of an international standard of inequality measurement
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The aggregates of the System of National Accounts are composite values which measure the result of economic activity without considering where the flows come from or where they go to. The cost of the necessary micro data was probably the main cause of this omission in the past. However, nowadays the greatest obstacles are the absence of political will to produce them and the lack of consensus on the inequality measure to be used as an international standard. The current revision of the SNA provides a good opportunity to include some norm of aggregation that takes into account distributive issues. In order to contribute to the achievement of that goal this paper compares the Gini and Euclidian norms (and their related families) using three dimensional representations. After discussing some of the most relevant theoretical issues, we display the income within-countrydistributions to explore the empirical relevance of using different inequality metrics.
Keywords: inequality measurement, system of national accounts, poorest and richest triangle. Authors biographyJuan Vicente-Perdiz, Maria Teresa Rubio Sanz, Departamento de Economía Aplicada. Universidad de Valladolid. Avda. Valle Esgueva, 6, 47011 Valladolid, Spain (perdiz@eco.uva.es, mayte@eco.uva.es). |
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