On a Distance Function-Based Inequality Measure in the Spirit of the Bonferroni and Gini Indices

S Subramanian
2012 unpublished
A natural way of viewing an inequality or a poverty measure is in terms of the vector distance between an actual (empirical) distribution of incomes and some appropriately normative distribution (reflecting a perfectly equal distribution of incomes, or a distribution with the smallest mean that is compatible with a complete absence of poverty). Real analysis offers a number of distance functions to choose from. In this paper, the employment of what in the literature is known as the Canberra
more » ... ance function leads to an inequality measure in the tradition of the Bonferroni and Gini indices of inequality. The paper discusses some properties of the measure, and presents a graphical representation of inequality which shares commonalities with the well known Lorenz curve depiction of distributional inequality.