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ClaimsProblems (version 1.0.0)

giniindex: Gini index

Description

This function returns the Gini index of any rule for a claims problem.

Usage

giniindex(E, d, Rule)

Value

The Gini index of a rule for a claims problem and the Gini index of the vector of claims.

Arguments

E

The endowment.

d

The vector of claims.

Rule

A rule: AA, APRO, CE, CEA, CEL, AV, DT, MO, PIN, PRO, RA, Talmud, RTalmud.

Details

Let \(N=\{1,\ldots,n\}\) be the set of claimants, \(E\ge 0\) the endowment to be divided and \(d\in \mathbb{R}_+^N\) the vector of claims such that \(\sum_{i \in N} d_i\ge E\).

Rearrange the claims from small to large, \(0 \le d_1 \le...\le d_n\). The Gini index is a number aimed at measuring the degree of inequality in a distribution. The Gini index of the rule \(\mathcal{R}\) for the problem \((E,d)\), denoted by \(G(\mathcal{R},E,d)\), is the ratio of the area that lies between the identity line and the Lorenz curve of the rule over the total area under the identity line.

Let \(\mathcal{R}_0(E,d)=0\). For each \(k=0,\dots,n\) define \(X_k=\frac{k}{n}\) and \(Y_k=\frac{1}{E} \sum_{j=0}^{k} \mathcal{R}_j(E,d)\). Then, $$G(\mathcal{R},E,d)=1-\sum_{k=1}^{n}\Bigl(X_{k}-X_{k-1}\Bigr)\Bigl(Y_{k}+Y_{k-1}\Bigr).$$ In general \(0\le G(\mathcal{R},E,d) \le 1\).

References

Ceriani, L. and Verme, P. (2012). The origins of the Gini index: extracts from Variabilitá e Mutabilitá (1912) by Corrado Gini. The Journal of Economic Inequality 10(3), 421-443.

Mirás Calvo, M.Á., Núñez Lugilde, I., Quinteiro Sandomingo, C., and Sánchez Rodríguez, E. (2023). Deviation from proportionality and Lorenz-domination for claims problems. Review of Economic Design 27, 439-467.

See Also

cumawardscurve, deviationindex, indexgpath, lorenzcurve, lorenzdominance.

Examples

Run this code
E=10
d=c(2,4,7,8)
Rule=AA
giniindex(E,d,Rule)
# The Gini index of the proportional awards coincides with the Gini index of the vector of claims
giniindex(E,d,PRO)

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