Kakwani index
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The Kakwani index is a measure of the
The Kakwani index uses the
The index is calculated using the following formula:
where denotes individual , is the total number of individuals in society, is the share of total taxes paid by individual , and is the before-tax Gini coefficient. Using the formula for the Gini coefficient, the equation for the Kakwani index can be reduced to:
where denotes the share of income received by individual .
The Kakwani index was originally devised to measure the progressivity of
The Kakwani index is also commonly used to examine the equity of government health care provision. In that situation, the Kakwani index would be equal to the difference between the Gini coefficient for incomes and the Gini concentration index for out‐of‐pocket health care payments.[1]
References
External links
- Pramod Kumar Chaubey (eGyanKosh, IGNOU/Indira Gandhi National Open University): Unit 11: Measures of Inequality – PD/gemeinfrei (PDF-Datei; 3,34 MB).