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Measuring Inequality$
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Frank Cowell

Print publication date: 2011

Print ISBN-13: 9780199594030

Published to Oxford Scholarship Online: April 2015

DOI: 10.1093/acprof:osobl/9780199594030.001.0001

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From Theory to Practice

From Theory to Practice

(p.103) 5 From Theory to Practice
Measuring Inequality

Frank A. Cowell

Oxford University Press

This chapter examines practical issues that emerge in utilizing the various methods of inequality measurement. It discusses the importance of the choice of income definition and of income receiver. It investigates the problems of using equivalence scales to make comparisons between heterogeneous income units and of the problems of zero values when using certain definitions of income. It also looks into the process of dealing with patchy data and how to assess the importance of inequality changes empirically.

Keywords:   inequality measurement, income definition, income receiver, equivalence scales, heterogeneous income units, zero values, patchy data

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