Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/195441
Authors: 
Greselin, Francesca
Zitikis, Ričardas
Year of Publication: 
2018
Citation: 
[Journal:] Econometrics [ISSN:] 2225-1146 [Volume:] 6 [Year:] 2018 [Issue:] 1 [Pages:] 1-20
Abstract: 
The underlying idea behind the construction of indices of economic inequality is based on measuring deviations of various portions of low incomes from certain references or benchmarks, which could be point measures like the population mean or median, or curves like the hypotenuse of the right triangle into which every Lorenz curve falls. In this paper, we argue that, by appropriately choosing population-based references (called societal references) and distributions of personal positions (called gambles, which are random), we can meaningfully unify classical and contemporary indices of economic inequality, and various measures of risk. To illustrate the herein proposed approach, we put forward and explore a risk measure that takes into account the relativity of large risks with respect to small ones.
Subjects: 
economic inequality
referencemeasure
personal gamble
inequality index
riskmeasure
relativity
JEL: 
D63
D81
C46
Persistent Identifier of the first edition: 
Creative Commons License: 
https://creativecommons.org/licenses/by/4.0/
Document Type: 
Article
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