Computation of Inequality Measures based on the Polynomial Pen’s Parade
The Pen's parade relates the rank to the income of a set of data. Using the population version of the Pen's parade, exact computations of several inequality measures are given, assuming a polynomial Pen's parade. These new results extend previous results obtained by Milanovic (1997), Mussard et al. (2011), among others. To illustrate the approach, an empirical application with real data is provided. We employ Luxembourg Income Study (LIS) data covering 53 countries and derive several inequality measures, including Gini coefficients and related distributional statistics, directly from the estimated polynomial form.
Palabras clave: Pen's parade income distribution inequality measures Gini coefficient distributional statistics