Does the gini have other disadvantages

Reference no: EM131204247

Discuss the following quote from Cowell (1995): ‘‘The main disadvantage of G[ini] is that an income transfer from a rich to a poorer man has a much greater effect on G if the men are near the middle rather than at either end of the parade.'' Do you agree? Why or why not? (Hint: Use the formula for the Gini coincident to determine the effect of a fixed transfer at different points in the income distribution.) Does the Gini have other ‘‘disadvantages''?

Reference no: EM131204247

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