The Young Person's Guide to the Theil Index: Suggesting Intuitive Interpretations and Exploring Analytical Applications

By Pedro Conceição, Pedro Ferreira. 2000

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Why Horizontal Inequalities Matter: Some Implications for Measurement. (2005, background): “…group variance is of interest – a key question is whether 12 In fact, Theil can be interpreted as a weighted summation of the (log) ratio between each groups’ share of a certain asset to the group’s population share, with weights equal to the group’s asset share (Conceicao and Ferreira, 2000).”
The Theil Index in Sequences of Nested and Hierarchic Grouping Structures (2000, background): “Expressing the Theil in the less familiar form [2] highlights a possible intuitive interpretation of the Theil index as a direct measure of the discrepancy between the distribution of income and the distribution of individuals between mutually exclusive and completely exhaustive (MECE) groups, as su”
Spatial Analysis of Regional Income Inequality (2001, methodology): “10For the detailed expressions for the moments of I under the normality assumption see Cliff and Ord (1973) .”