In this paper we use the index we call Population Dynamic Theil's Entropy to analyze as the income inequality varies on time. The index may consider both the inequality among the classes in which we assign the individuals and the inequality within each class. This inequality measure working in a...

In this paper we propose a stochastic model to analyze the time evolution of inequality within an economic system. The classical inequality indices (Herfindahl-Hirschman, Gini and Theil’s entropy) are thereby turned into a dynamic form. We show, by using a simulative approach, how it is...

In this paper we present a methodology for measuring income inequality dynamically within a Markov model of income evolution. The proposed methodology requires knowledge of the evolution of the population and the averages and medians of the incomes in a country and allows the computation of...