Tag: the atkinson index

The Atkinson Index is a measure of economic inequality that takes into account the distribution of income across the entire population. It is calculated using the following formula: A(ε) = 1 - (1/μ) * (Σ(y_i^(1-ε)) / n)^(1/(1-ε)) where A(ε) is the Atkinson Index, ε is the inequality aversion parameter, μ is the mean income, y_i is the income of individual i, and n is the total number of individuals in the population.