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Theil Inequality Decomposition×Gini Coefficient×
VakgebiedEconomieSociology
FamilieProcess / pipelineProcess / pipeline
Jaar van ontstaan19671912
GrondleggerHenri Theil (1967); decomposition class by Anthony Shorrocks (1980)Corrado Gini
TypeDecomposable inequality measureScalar measure of statistical dispersion / inequality
Oorspronkelijke bronTheil, H. (1967). Economics and Information Theory. Amsterdam: North-Holland. ISBN: 9780444814630Ceriani, L., & Verme, P. (2012). The origins of the Gini index: extracts from Variabilità e Mutabilità (1912) by Corrado Gini. The Journal of Economic Inequality, 10(3), 421–443. DOI ↗
AliassenTheil Index, Theil's T and L, Generalized Entropy Decomposition, Within-Between Inequality DecompositionGini index, Gini ratio, Gini concentration ratio, G
Verwant35
SamenvattingThe Theil index, introduced by Henri Theil in 1967 by importing Shannon's information theory into economics, measures income inequality as the divergence between each unit's income share and its population share. Its defining advantage is exact additive decomposability: total inequality splits cleanly into a within-group component (inequality inside each subgroup) and a between-group component (inequality between subgroup means). Theil's T and its companion L (mean log deviation) are the two best-known members of the generalized-entropy class, which Anthony Shorrocks showed in 1980 to be the only inequality measures that are additively decomposable in this way.The Gini coefficient is the most widely used single-number summary of inequality in a distribution such as income or wealth. Introduced by the Italian statistician Corrado Gini in 1912, it equals twice the area between the Lorenz curve and the line of perfect equality, ranging from 0 when everyone has the same amount to a maximum approaching 1 when one unit holds everything.
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