D'AMICO, GUGLIELMO; DI BIASE, GIUSEPPE; MANCA, RAIMONDO - In: Hitotsubashi Journal of Economics 55 (2014) 2, pp. 229-239
In this paper we propose a modification of the Dynamic Theil's Entropy that considers the inequality in the whole population. We decompose it into three addends and we show how to compute them within a Markov model of income evolution. In this way the income inequality can be measured in the...