2015/08/01 by Francesca Greselin, Greselin, Francesca, Ričardas Zitikis +2
Decision Sciences · Economics, Econometrics and Finance · Mathematics · Social Sciences · #62-02 #62C99 #90B50 #91B14 #91B16 #91B30 #91B82 #Actuarial science #Applications (stat.AP) #Complex Systems and Time Series Analysis #Computer science #Decision-Making and Behavioral Economics #Demography #Econometrics #Economic inequality #Economic risk #Economics #FOS: Computer and information sciences #Gini coefficient #Income, Poverty, and Inequality #Inequality #Lorenz curve #Mathematical analysis #Mathematical economics #Mathematics #Measure (data warehouse) #Methodology (stat.ME) #Point (geometry) #Population #Risk and Portfolio Optimization #Sociology #Theoretical physics #Theory of relativity #msc:62-02 #msc:62C99 #msc:90B50 #msc:91B14 #msc:91B16 #msc:91B30 #msc:91B82 #stat.AP #stat.ME
paper · pdf · doi:10.48550/arxiv.1508.00127
published in arXiv (Cornell University) (Cornell University) · 29 pages, 4 figures
arxiv created 2015/08/01 · openalex publication_date 2015/08/01 · arxiv updated 2015/08/04 · openalex created_date 2022/10/01 · openalex updated_date 2026/07/28
The underlying idea behind the construction of indices of economic inequality\nis based on measuring deviations of various portions of low incomes from\ncertain references or benchmarks, that could be point measures like population\nmean or median, or curves like the hypotenuse of the right triangle where every\nLorenz curve falls into. In this paper we argue that by appropriately choosing\npopulation-based references, called societal references, and distributions of\npersonal positions, called gambles, which are random, we can meaningfully unify\nclassical and contemporary indices of economic inequality, as well as various\nmeasures of risk. To illustrate the herein proposed approach, we put forward\nand explore a risk measure that takes into account the relativity of large\nrisks with respect to small ones.\n