Mathematical definition of the Atkinson index

Mathematical definition of the Atkinson index
The Atkinson index calculates social inequality by measuring the distribution of income. It ranges from 0 to 1, with 0 indicating perfect equality and 1 representing extreme inequality. The formula uses a parameter, epsilon, to adjust sensitivity to income distribution changes. Lower epsilon values reflect higher sensitivity. This index is sensitive to income disparities among groups. It is widely used in economics and social sciences to analyze income inequality trends. Economists interpret outcomes based on the value of epsilon. The Atkinson index offers a nuanced perspective on income distribution, providing insights into societal disparities. Policymakers and researchers rely on this index for informed decision-making.
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