Decomposing the Quantile Ratio Index with Applications to Australian Income and Wealth Data

Luke Anthony Prendergast, Robert G Staudte
2019 European Journal of Pure and Applied Mathematics  
The quantile ratio index is a simple and effective measure of relative inequality for income data that is resistant to outliers. A useful property of this index is investigated here: given a partition of the income distribution into a union of sets of symmetric quantiles, one can find the inequality for each set and readily combine them in a weighted average to obtain the index for the entire population. When applied to data for various years, one can track how these contributions to inequality
more » ... vary over time, as illustrated here for Australian Bureau of Statistics income and wealth data.
doi:10.29020/nybg.ejpam.v12i3.3436 fatcat:ywjmgqik7vgndlambrpzsvh3ie