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By Malliavin P., Mancino E.

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The second item is Gini Coefficient based on the average income of groups, indicating the contribution of inequality between groups to the overall inequality, marked as GB . The third item R points to the interaction between groups due to their overlapping. If the median is set as demarcating point, we have two groups on both sides. In this case, R ¼ 0, V1 ¼ V2 ¼ 0:5, l1 ¼ Lð0:5Þ=0:5, and l2 ¼ 1 À Lð0:5Þ=0:5. 2), it not difficult to detect the difference between polarization measurement and income inequality measurement based on W-mode index.

H. Rasche, J. C. Koo and N. 10) Q and P refer to the accumulative income percentage and population (household) percentage, respectively, and a and b are parameters to be estimated. From the equation, it is easy to see that when P ¼ 0, Q ¼ 0, and P ¼ 1, Q ¼ 1. Obviously, nature (i) and nature (ii) of Lorenz Curve are satisfied. When a ¼ b ¼ 1, then P ¼ Q, and it is absolute equality line. ' : If we put the estimated value of a and b into the formula, and if Q0 > 0 and Q > 0, nature (iii) and nature (iv) of Lorenz Curve are satisfied, so the Lorenz Curve equation derived is valid.

Any state beyond the mark is deemed polarization. Dynamic perspective refers to the change course of the absolute and relative inequality between the high-income and the lowincome in a certain period of time. Again, we need to specify a certain assessment tool and the time span for comparison. Of course, some scholars (Joan-Maria Esteban and Debraj Ray 1994) think differently. They assume that only two extremes or two opposite sides can be defined as polar, and so-called division means that homogeneous entity changes into heterogeneous one.

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