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f-Gintropy: An Entropic Distance Ranking Based on the Gini Index.

Tamás Sándor Biró1,2, András Telcs1,3, Máté Józsa2

  • 1Wigner Research Centre for Physics, Konkoly-Thege M. 29-33, 1121 Budapest, Hungary.

Entropy (Basel, Switzerland)
|March 25, 2022
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Summary
This summary is machine-generated.

We introduce gintropy, a novel measure for ranking income and wealth inequality between regions. Its advanced form, f-gintropy, offers more sensitive distinctions in economic disparities.

Keywords:
Gini indexentropygintropy

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Area of Science:

  • Economics
  • Econometrics
  • Statistical analysis

Background:

  • Income and wealth inequality present complex challenges for global economic analysis.
  • Existing measures may lack the sensitivity to differentiate nuanced disparities.

Purpose of the Study:

  • To introduce a new entropic distance analog quantity, gintropy, for measuring inequality.
  • To generalize gintropy to f-gintropy for enhanced sensitivity in regional inequality comparisons.

Main Methods:

  • Utilizing the density of the Gini index within the Lorenz map framework.
  • Developing a generalized f-gintropy by incorporating a function of income or wealth values.

Main Results:

  • Gintropy provides a method for pairwise mapping and ranking of countries/regions by inequality.
  • F-gintropy demonstrates superior sensitivity in distinguishing between regional economic inequalities compared to the original gintropy.

Conclusions:

  • Gintropy and f-gintropy offer valuable new tools for analyzing and comparing economic inequality.
  • The f-gintropy generalization enhances the precision of inequality assessments.