Inequality (fairness measures) in Julia

economics

#1

Is there a Julia package that calculates inequality measures like Gini Index, Theil Index, Atkinson Index, Hoover Index?


#2

I don’t know but I’d be totally up for writing one together! This is part of my PhD topic. P.S. Atkinson is the best obviously


#3

I am planning to use the inequality index as a constraint in a linear problem. I have not quite looked closely at Atkinson Index so could you tell me if the Atkinson index can be used in an LP?


#4

I’ve never done linear programming, sorry. I’m more interested in the ethics side of things.


#5

However, if you’re doing some sort of optimization, I’d just maximize social welfare and skip the inequality measure. So if you’re working with income, just maximize total income * (1 - the atkinson index for income). You can do a bit of cancellation to simplify this expression.


#6

P.P.S. don’t pick one for the risk aversion parameter if you’re going to use the Atkinson index. Usually you’ll want a higher number; look for an estimate of mean RELATIVE risk aversion (there’s a ton of studies on this).


#7

I have a bunch of these written up for Gini, Theil, Atkinson and a few other common measures including functions to calculate them from common distribution families, mixture models and kernel density estimates. I’ll hunt them out and post them in a gist

EDIT : code