Many economists use different tools in measuring the income distribution, which can lead to kind of confusion when different literature finding are being compared. On the other hand, Gini index or Gini coefficient is considered as the best measure for inequality but at the same time it also has its disadvantages. To measure inequality , usually the GINI coefficient is employed as the standard measurement.
Having in mind , that the GINI coefficient gives excessive weight to changes in the middle of the distribution, it gives very little weight to the changes at the ends. However , Dowrick and Akmal in their research use the PPP- purchasing power parity because PPP have some form of non-neutral calculation. That is, such calculations tend to show more than the incomes of developing countries (Dowrick and Akmal, 2001).
It is in fact an overall measurement of inequality , but not an exact measurement. Moreover , it is quite possible that the inequality prevails and inequality index depicted is high, but as it is the medium level distances from equality, which matters it may not result in right determination of index of inequality of states . The two states with different levels of inequality may that way provide same or unconvincing levels of inequality.
Sen has used intensity of inequality and poverty as a measure of development rather than using absolute levels of inequality. He also uses the term functionality as against mere existence of certain facility/infrastructure.
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