The Inequality Possibility Frontier : Extensions and New Applications

This paper extends the Inequality Possibility Frontier approach in two methodological directions. It allows the social minimum to increase with the average income of a society, and it derives all the Inequality Possibility Frontier statistics for two other inequality measures besides the Gini. Finally, it applies the framework to contemporary data, showing that the inequality extraction ratio can be used in the empirical analysis of post-1960 civil conflict around the world. The duration of conflict and the casualty rate are positively associated with the inequality extraction ratio, that is, with the extent to which elite pushes the actual inequality closer to its maximum level. Inequality, albeit slightly reformulated, is thus shown to play a role in explaining civil conflict.

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Bibliographic Details
Main Author: Milanovic, Branko
Format: Policy Research Working Paper biblioteca
Language:English
en_US
Published: World Bank, Washington, DC 2013-05
Subjects:ABSOLUTE POVERTY, ABSOLUTE POVERTY LINE, AVERAGE INCOME, AVERAGE INCOME LEVEL, AVERAGE INCOMES, BENCHMARKING, CLASSICAL ECONOMISTS, CONFLICT, DEPENDENT VARIABLE, DEVELOPING WORLD, DEVELOPMENT POLICY, ECONOMIC DEVELOPMENT, ECONOMIC HISTORY, ECONOMIC RESEARCH, ELASTICITY, EMPIRICAL ANALYSIS, EMPIRICAL EVIDENCE, EMPIRICAL WORK, EXPLANATORY POWER, EXPLANATORY VARIABLES, FAMILY BUDGET SURVEYS, GDP, GDP PER CAPITA, GINI COEFFICIENT, GINI INDEX, HEALTH INSURANCE, HOUSEHOLD INCOME, INCOME DISTRIBUTION, INCOME STUDY, INCOMES, INDIVIDUAL INCOMES, INDUSTRIAL ECONOMIES, INEQUALITIES, INEQUALITY, INEQUALITY ESTIMATES, INEQUALITY MEASURE, INEQUALITY MEASUREMENT, INEQUALITY MEASURES, LIVING STANDARDS, MEAN INCOME, MEAN INCOMES, MEAN LOG DEVIATION, MEASURED INEQUALITY, MEASURING INEQUALITY, MINIMUM INCOME, OFFICIAL POVERTY LINES, PER CAPITA INCOME, POLICY DISCUSSIONS, POLICY RESEARCH, POLITICAL SCIENCE, POOR, POOR PEOPLE, POVERTY LINES, POVERTY REDUCTION, POVERTY THRESHOLD, PRISONER, REAL INCOME, REAL PER CAPITA INCOME, REGRESSION RESULTS, RELATIVE POVERTY, SIGNIFICANT IMPROVEMENT, STATISTICAL DATA, WAR, WEALTH, WILL,
Online Access:http://documents.worldbank.org/curated/en/2013/05/17726071/inequality-possibility-frontier-extensions-new-applications
http://hdl.handle.net/10986/15589
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