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Atkinson index

Updated: Aug 20, 2021

A measure of income inequality. Define the equally distributed equivalent income as the level of income that if given to all households generates the same level of social welfare as the current income distribution. If the marginal utility of income falls with income then M(EDE) is less than the mean level of income whenever there is an income inequality.

Atkinson index

A higher value of A represents greater inequality. See also Lorenz Curve.

Reference: Oxford Press Dictonary of Economics, 5th edt.

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