FAO.org

This tool illustrates the concept of desirable properties any inequality index should respect. In particular, it introduces the distinction between a positive and a normative approach to inequality analysis. Then, it discusses the role of axioms in inequality measurement and their conceptual meaning. Finally, using the Gini Index and the variance, a step-by-step procedure and numerical examples are introduced for operational purposes. 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 Social Welfare Analysis of Income Distributions: [...]

This analytical tool illustrates how to decompose inequality measures by income sources. In particular, it discusses this decomposition in the context of the Gini and the Theil Indexes. 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 Income Inequality. Theil Index and Entropy Class Indexes. EASYPol Series 051 Policy Impacts on Inequality: Decomposition of Income Inequality by Subgroups. EASYPol Series 052 This paper is part of [...]

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 [...]

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 [...]

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 [...]

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: [...]

The LogFrame method is an instrument employed by analysts, planners and managers for: problem analysis, objective formulation, planning, implementation, monitoring and evaluation of selected, objective-oriented interventions that aim at a change of reality from a situation which is perceived as negative towards a positive situation. Because of its general logic, the LogFrame method can be applied to any type of objective oriented tasks, irrespective of the nature, level of aggregation or complexity of the problem to be solved. Though originally developed as a method for project planning and management, the method and its methodological principles can analogously be applied to analysis, planning and management of programmes and [...]

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.

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 [...]

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 [...]