Higher-order Gini indices: An axiomatic approach

Fuente: arXiv
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Main Authors: Han, Xia, Wang, Ruodu, Wu, Qinyu
Format: Preprint
Published: 2025
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author Han, Xia
Wang, Ruodu
Wu, Qinyu
author_facet Han, Xia
Wang, Ruodu
Wu, Qinyu
contents Via an axiomatic approach, we characterize the family of n-th order Gini deviation, defined as the expected range over n independent draws from a distribution, to quantify joint dispersion across multiple observations. This family extends the classical Gini deviation, which relies solely on pairwise comparisons. The normalized version is called a high-order Gini coefficient. The generalized indices grow increasingly sensitive to tail inequality as n increases, offering a more nuanced view of distributional extremes. The higher-order Gini deviations admit a Choquet integral representation, inheriting the desirable properties of coherent deviation measures. Furthermore, we show that both the n-th order Gini deviation and the n-th order Gini coefficient are statistically n-observation elicitable, allowing for direct computation through empirical risk minimization. Data analysis using World Inequality Database data reveals that higher-order Gini coefficients capture disparities that the classical Gini coefficient may fail to reflect, particularly in cases of extreme income or wealth concentration.
format Preprint
id arxiv_https___arxiv_org_abs_2508_10663
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Higher-order Gini indices: An axiomatic approach
Han, Xia
Wang, Ruodu
Wu, Qinyu
Mathematical Finance
Econometrics
Statistics Theory
Via an axiomatic approach, we characterize the family of n-th order Gini deviation, defined as the expected range over n independent draws from a distribution, to quantify joint dispersion across multiple observations. This family extends the classical Gini deviation, which relies solely on pairwise comparisons. The normalized version is called a high-order Gini coefficient. The generalized indices grow increasingly sensitive to tail inequality as n increases, offering a more nuanced view of distributional extremes. The higher-order Gini deviations admit a Choquet integral representation, inheriting the desirable properties of coherent deviation measures. Furthermore, we show that both the n-th order Gini deviation and the n-th order Gini coefficient are statistically n-observation elicitable, allowing for direct computation through empirical risk minimization. Data analysis using World Inequality Database data reveals that higher-order Gini coefficients capture disparities that the classical Gini coefficient may fail to reflect, particularly in cases of extreme income or wealth concentration.
title Higher-order Gini indices: An axiomatic approach
topic Mathematical Finance
Econometrics
Statistics Theory
url https://arxiv.org/abs/2508.10663