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Re: st: Ginis for negative net worth


From   Abdel Rahmen El Lahga <rahmen.lahga@gmail.com>
To   statalist@hsphsun2.harvard.edu
Subject   Re: st: Ginis for negative net worth
Date   Mon, 5 Jul 2010 12:01:01 +0100

Nora,
Gini index as well as other inequality indices are defined for
positive outcomes and can not applied for negatives observations.
You have two alternatives:
1) use a trick (not so popular) proposed by Chen et al. (1982) in
oxford economic paper (1982) page 473-478 (See also the comment by
Berrebi and Silber in the same journal (1985 page 525-526) to deal
with negative outcomes
2) You can use absolute gini index to avoid problems caused by
negative income (but you should care about  different ethical
judjements associated to absolute view of inequality)
HTH
AbdelRahmen

2010/7/5 Nora Müller <nora.mueller@uni-bamberg.de>:
> Dear All,
>
> I'm trying to calculate the gini coefficient for net worth (= financial
> assets + real assets - debts) that has some negative values.
> I do this using the command "inequal7" written by Philippe Van Kerm.
>
> I'm doing an international comparison and for Poland I get a Gini that is
> 1.15. Can anyone help me with the interpretation?
> Why can there be a gini greater than one?
>
> Thanks for your consideration,
> Nora
>
>
> --
> *********************************************
> Nora Müller, Dipl.-Soz.
>
> Faculty for Social and Economic Sciences
> Chair of Sociology I
> Otto-Friedrich-University Bamberg
>
> Fakultät Sozial- und  Wirtschaftswissenschaften
> Lehrstuhl Soziologie I
> Otto-Friedrich-Universität Bamberg
> Wilhelmsplatz 3
> 96047 Bamberg
>
> Raum: 229
> Tel. +49-951-863 3909
> Fax. +49-951-863 2597
> Email: nora.mueller@uni-bamberg.de
> www: http://www.uni-bamberg.de/sowi/soziologie-i/
>
> http://gif-project.soziologie-blossfeld.de
> *********************************************
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-- 
AbdelRahmen El Lahga

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