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Tool

2006

Policy impacts on inequality: Decomposition of Income Inequality by Subgroups. EASYPol Series 052

This analytical tool illustrates how to decompose inequality measures by subgroups of populations. In particular, it defines the concepts of within and between inequality and analyses how different inequality indexes perform with respect to this decomposition. In particular, the performance of the analysis of variance, the Gini Index and the Theil Index will be discussed. A step-by-step procedure and numerical examples give operational content to the tool. For further information, see also: Charting Income Inequality. The Lorenz Curve. EASYPol Series 000 Social Welfare Analysis of Income Distributions: Ranking Income Distributions with Lorenz Curves. EASYPol Series 001 Inequality Analysis: The Gini Index. EASYPol Series 040 Describing [...]

Tool

2006

Describing Income Inequality. Theil Index and Entropy Class Indexes. EASYPol Series 051

This analytical tool illustrates the entropy class of inequality indexes. In particular, it shows how different inequality indexes may be obtained by using a general definition (class) of indexes by assigning different values to a fixed parameter. A step-by-step procedure and numerical examples then show how to move from conceptual to operational ground. For further information, see also: Charting Income Inequality. The Lorenz Curve. EASYPol Series 000 Social Welfare Analysis of Income Distributions: Ranking Income Distributions with Lorenz Curves. EASYPOl Series 001 Social Welfare Analysis of Income Distributions: Ranking Income Distributions with Crossing Generalised Lorenz Curves. EASYPol Sereis 003 Inequality Analysis: The Gini Index. EASYPol [...]

Tool

2006

Policy Impacts on Inequality. Welfare Based Measures of Inequality: The Atkinson Index. EASYPol Series 050

This analytical tool illustrates one of the most popular welfare-based measures of inequality, the Atkinson Index . In particular, it discusses the foundations of this Index, in terms of social welfare specifications, and the concept of equally distributed equivalent income on which the measure is based. The use of this measure is then exemplified in a step-by-step procedure and in a numerical example. For further information, see also: Impacts of Policies on Poverty: Distributional Poverty Measures Poverty Analysis: Poverty and Dominance Social Welfare Analysis of Income Distributions: Social Welfare, Social Welfare Functions and Inequality Aversion This paper is part of the FAO Policy series: EASYPol-Resources [...]

Tool

2006

Inequality Analysis: The Gini Index. EASYPol Series 040

This analytical tool addresses the most popular inequality index, the Gini index. It discusses its characteristics and the link with another popular graphical tool of representing inequality, the Lorenz Curve. Extended version of the Gini Index with different weighting schemes are also discussed. The use of the Gini Index and of its generalised versions is explained through a step-by-step procedure and numerical examples. For further information, see also: Charting Income Inequality. The Lorenz Curve. EASYPol Series 000 Impacts of Policies on Poverty. Basic Poverty Measures. EASYPol Series 007 Policy Impacts on Inequality: Inequality and Axioms for its Measurement. EASYPol Series 054 Policy Impacts on Inequality: [...]

Tool

2005

Social Welfare Analysis of Income Distributions: Ranking Income Distributions with Generalised Lorenz Curves

This module documents calculation and use of Lorenz curves for inequality analysis. Specifically, it illustrates how Generalised Lorenz (GL) Curves can be used to identify the best income distribution on social welfare grounds within a set of alternative income distributions generated by different policy options where ordinary Lorenz curves fail to work. It is developed for capacity developent and operational purposes.

Tool

2005

Ranking Income Distributions with Generalised Lorenz Curves. EASYPol Series 002

This module illustrates how Generalised Lorenz (GL) Curves can be used to identify the best income distribution on social welfare grounds, within a set of alternative income distributions generated by different policy options, in many of the cases where ordinary Lorenz curves fail to work. After illustrating some pitfalls of ordinary Lorenz Curves, a cursory presentation of the step-by-step procedure to check for Generalised Lorenz dominance and to infer welfare judgements is provided and demonstrated with some simple numerical examples. This module also points out the limitations of the GL approach whenever GL curves cross each other. In addition, it illustrates [...]

Tool

2005

Equivalence Scales: Objective Methods. EASYPol Series 034

This analytical tool illustrates how to use objective methods to derive Equivalence scales. The focus will be on the Engel method, on the Rothbarth method and on the Utility-based methods. The main difference between these methods is that the first two are based on proxy variables for the household well-being, while the last set of methods is based on the consideration of the overall preferences revealed by consumers. For further information, see also: Equivalence Scales: General Aspects. EASYPol Series 032 Equivalence Scales. Subjective Methods. EASYPol Series 033 This paper is part of a FAO Policy series: EASYPol-Resources for policy making (in agriculture, rural development [...]

Tool

2005

Equivalence Scales. Subjective Methods. EASYPol Series 033

This analytical tool illustrates how to use subjective methods to derive equivalence scales. Different methods exist, but the focus will be on parametric methods. These methods are based on the definition of two broad sets of parameters. The first defines the degree of economies of scale within any given household; the second defines how much any further member adds to the cost of running a family. As we will see, the two concepts are linked, giving rise to a variety of ways to parameterise equivalence scales. For further information, see also: Impacts of Policies on Poverty. The Definition of Poverty. EASYPol Series [...]

Tool

2005

Equivalence Scales. General Aspects. EASYPol Series 032

This analytical tool illustrates how inequality and poverty analysis may be carried out when the income distribution is defined over households (i.e. household incomes) and not over individuals (i.e. individual incomes). When household incomes are considered, a problem arises with regard to the possibility of comparing monetary incomes of different households with different numbers of inhabitants. In this case, and as described in this module, a correction should be made to meaningfully compare different situations. This correction is called an equivalence scale. An equivalence scale may be a simple per capita measure or a more sophisticated way to take into [...]

Tool

2005

Decentralization of Agricultural Services: Decentralization of Rural Financial Services. EASYPol Series 014

This paper first examines the characteristics of rural financial services, including demand and supply factors in rural financial markets. It draws attention to past failures of centralized and directed rural credit services, and the emergence of a new broader vision of rural financial services, based on liberal economics and decentralization policies. The conceptual framework for reform of rural financial services is discussed, and important principles of decentralization reiterated. Policy implications, in terms of options for decentralization, and the roles and responsibilities of the government are next examined. Various options which might be considered under deconcentration, devolution, and diversification of ownership of [...]
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