Policy Impacts on Inequality: Inequality and Axioms for its Measurement
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This tool illustrates the concept of desirable properties any inequality index should respect. In particular, it introduces the distinction between a positive and a normative approach to inequality analysis. Then, it discusses the role of axioms in inequality measurement and their conceptual meaning. Finally, using the Gini Index and the variance, a step-by-step procedure and numerical examples are introduced for operational purposes.