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Theil Index: Econometrics, Entropy (information theory), Social Welfare Function, Gini Coefficient, Lorenz Curve, Atkinson Index, Hoover Index - Softcover
Synopsis
Please note that the content of this book primarily consists of articles available from Wikipedia or other free sources online. The Theil index, derived by econometrician Henri Theil, is a statistic used to measure economic inequality. The Theil index is derived from Shannon''s measure of information entropy. Letting T be the Theil index and S be Shannon''s information entropy measure, Shannon derived his entropy measure in terms of the probability of an event occurring. This can be interpreted in the Theil index as the probability a dollar drawn at random from the population came from a specific individual. This is the same as the first term, the individual''s share of aggregate income.
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Please note that the content of this book primarily consists of articles available from Wikipedia or other free sources online. The Theil index, derived by econometrician Henri Theil, is a statistic used to measure economic inequality. The Theil index is derived from Shannon''s measure of information entropy. Letting T be the Theil index and S be Shannon''s information entropy measure, Shannon derived his entropy measure in terms of the probability of an event occurring. This can be interpreted in the Theil index as the probability a dollar drawn at random from the population came from a specific individual. This is the same as the first term, the individual''s share of aggregate income.
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