Group averaging and the Gini deviation
- Authors: Pavlov O.I.1, Pavlova O.Y.2
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Affiliations:
- Peoples’ Friendship University of Russia (RUDN University)
- All-Russian Correspondence Multidisciplinary School
- Issue: Vol 29, No 3 (2021): New trends, strategies and structural changes in emerging markets
- Pages: 595-605
- Section: ECONOMIC AND SOCIAL TRENDS
- URL: https://ogarev-online.ru/2313-2329/article/view/324215
- DOI: https://doi.org/10.22363/2313-2329-2021-29-3-595-605
- ID: 324215
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Abstract
It is known that partitioning a society into groups with subsequent averaging in each group decreases the Gini coefficient. The resulting Lorenz function is piecewise linear. This study deals with a natural question: by how much the Gini coefficient could decrease when passing to a piecewise linear Lorenz function? Obtained results are quite illustrative (since they are expressed in terms of the geometric parameters of the polygon Lorenz curve, such as the lengths of its segments and the angles between successive segments) upper bound estimates for the maximum possible change in the Gini coefficient with a restriction on the group shares, or on the difference between the averaged values of the attribute for consecutive groups. It is shown that there exist Lorenz curves with the Gini coefficient arbitrarily close to one, and at the same time with the Gini coefficient of the averaged society arbitrarily close to zero.
Keywords
About the authors
Oleg I. Pavlov
Peoples’ Friendship University of Russia (RUDN University)
Author for correspondence.
Email: pavlov-oi@rudn.ru
PhD, Associate Professor of Economic and Mathematic Modelling Department, Economic Faculty
6 Miklukho-Maklaya St, Moscow, 117198, Russian FederationOlga Yu. Pavlova
All-Russian Correspondence Multidisciplinary School
Email: lolgau@yandex.ru
PhD, Associate Professor at the Department of Higher Mathematics
B-234 Vorob'evy Gory, Moscow, 119234, Russian FederationReferences
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