The theil index is a statistic used to measure economic inequality. A node having multiple classes is impure whereas a node having only one class is pure. Two recent books on index numbers by allen 1975 and banerjee 1975 illustrate most of the remarks on index numbers by reference to a retail price index. In this paper, we propose a new measure of health disparities the symmetrized theil index sti, and derive its design. The numerical result is in terms of negative entropy so that a higher number indicates more order that is further away from the ideal. We illustrate each measure using hypothetical examples used in chapter 2 to illuminate. Figure 14 data sheet from the output book of the theil index. Despite the benefit of decomposability, the theil index is little used, as the gini index remains the standard. Theils index derives from the notion of entropy in. Look at the theil index as a measure for the distribution e. Many important models have been proposed in literature for improving the accuracy and effeciency of.
The theil index t uses the log transformation of income, thus the distance. Theil, inequality and the structure of income distribution. James galbraith of u texas austin uses theil index. Economic relations involving conditional probabilities. Try searching on jstor for other items related to this book. This sample theil index research paper is published for educational and informational purposes only. Examples are an index in the back matter of a book and an index that serves as a library catalog in a traditional backofthebook index, the. I may oversimplify, but try to explain the theil in that manner nevertheless. Henri theils book on information theory theil 1967 provided a landmark. Figure 14 data sheet from the output book of the theil index application. Pdf the multigroup entropy index also known as theils.
Withingroup inequalities in both the weighted methods are prevalent and almost constant due to the energy mix of the provinces in the same group. However, these authors do not discuss the problem of inference, an understandable omission since the sampling properties of the eigenvectors may be intractable unless cc and cc are covariance matrices bat. Fill in the % of population that is richer column by adding all the fraction of population terms below that row. Theil index related to natural gas consumption given in fig.
Does income distribution matter for effective demand. If you really wanted the theilsen median slope, then download the somersd package from ssc, which calculates confidence intervals for it. Estimating within country and between country theil. On the other hand, the influence function if of statistics is an important tool in the asymptotics of a nonparametric statistic. Most of these are available online from amazon or barnes and noble. The multigroup entropy index also known as theils h or the information theory index article pdf available january 2004 with 1,963 reads how we measure reads. Also check our tips on how to write a research paper, see the lists of research paper topics, and browse research paper examples. Easypol module 051 theil index and enropy class indexes.
We are frequently asked to recommend books about programming, embedded development, and hardware design. Both gini and entropy are measures of impurity of a node. But the fact remains that the theil index is an arbitrary formula, and the. Accessing a bound document from a binding example 75. If you need help writing your assignment, please use our research paper writing service and buy a paper on any topic at affordable price.
While the health status of americans has generally improved over time, health disparities among groups of the population have been pervasive. The theil index can be interpreted as the expected information content of the indirect message which transforms the population shares as prior probabilities into the income shares as posterior probabilities. We imagine using that metadata to merge with other books metadata to lead you out into other publications. A single numeric value of the theil inequality index \0 theil index. It is shown that theil s initial insight leads naturally to a very general class of decomposable inequality measures. Borrell, dds, phd 1 and makram talih, phd 2 1 department of health sciences, lehman college, city university of new york. This study applies theils second measure for looking into inequality in access to improved water source. Though less uncanny than frankensteins monster, these tools are nevertheless valuable to any army to gain an intelligence advantage, for example, or to penetrate defenses in the relatively. Since the early 1990s, scholars have introduced income inequality analyses, such as the lorenz curve, the gini index, the theil index, and the atkinson index. You can use index to retrieve individual values or entire rows and columns.
Although the theil index will always be positive a value between 0 and 1, certain areas can contribute negatively to the index, signifying such regions lower the overall level of inequality. On the filter page, under filter expression, enter sql expression that youll use to create the filtered index. For example, heil and wodon applied the gini coefficient and the group decomposition theory to estimate the trend of per capita co 2 emissions inequality between rich and poor countries. This can ensure most accurate lorenz curve and thus most accurate computation of the coefficient. Since theils inequality index is the complete equality entropy minus the. Theil index university of texas inequality project the university of. Thus a lot of active research works is going on in this subject during several years. Notes on startups, or how to build the future hardcover september 16, 2014. Theil index t t is calculated for alpha1, the mean log deviation t l for alpha0. For example, the rate ratio increased by a nonsignificant 36. There is alot of stuff on theil both on the web and in bookseg galbraiths books on inequality. Folks, im looking to measure both within and between country inequality.
It is thus closely related to a number of other commonly used families of inequality measures. An analysis of 188 countries for the period 19902012 demonstrates three observations. Marc andreessen, cocreator of the worlds first web browser, cofounder of netscape, and venture capitalist at andreessen horowitz zero to one is an important handbook to relentless improvement for big companies and beginning entrepreneurs alike. An xbl property setting and getting a value example 73. On the influence function for the theillike class of. From wikibooks, open books for an open world example. The excel index function returns the value at a given position in a range or array. Index is often used with the match function, where match locates and feeds a position to index. Gini index vs entropy information gain decision tree.
Gini coefficient would would work best if data about each and every citizen in the country is available. Estimating within country and between country theil index 10 nov 2015, 07. Index of bookspdf name last modified size description. Gini index or entropy is the criterion for calculating information gain. The second theil index or mld is an example of theil s application of the.
This index allows inequalities to be broken up within and between groups. An index is an alphabetical list of keywords contained in the text of a book or other lengthy writing project. Suggestive intuitive interpretations and exploring analytical applications article pdf available in ssrn electronic journal february 2000 with 849 reads. We imagine an index term telling you the most important places in the text, not just every place. An introductory study on time series modeling and forecasting. The bookshelf includes chipspecific books as well as many generally useful programming texts. Introduction henri theil s book on information theory theil, 1967 provided a land.
The theil index and mean log deviation are examples of disproportionality measures of inequality. But the fact remains that the theil index is an arbitrary formula, and the average of. Time series modeling and forecasting has fundamental importance to various practical domains. This is one format that can free it to tell readers more than just a page. Copy and paste the following example into the query window and click execute. He is a cofounder of paypal, palantir technologies and founders fund. Decision tree algorithms use information gain to split a node. Biostatistics with rnonparametric and distributionfree statistics. Coefficient of variation theil index gini coefficient easy to understand immune to outliers for weighted data includes all data not affected by inflation i. For example, if the characteristic is income, then xi is the income of agent i. Figure 1 shows the series of global inequality measures provided by bourguignon, using a theil index.
On one hand, a large class of inequality measures, which includes the generalized entropy, the atkinson, the gini, etc. The monetary services indexes and their dual usercost indexes, which are described in the next article in this issue, building new monetary services indexes, are chained superlative index numbers, employing the tornqvisttheil discretetime quantity indexnumber formula and its dualuser cost index formula. The second theil index or mld is an example of theils application of the concept. Zero to one is the first book any working or aspiring entrepreneur must readperiod. Entropy in statistics is analogous to entropy in thermodynamics. The theil index measures an entropic distance the population is away from the ideal egalitarian state of everyone having the same income. Otherwise, if you wanted one of his other parameters, then ignore this. Think about some particles of a gas being inequally distributed within a clo. Inheriting xul widget characteristics using extends. Choices of inequality measures sage research methods. The gini index is the gini coefficient expressed as a percentage. In object explorer, connect to an instance of database engine.
The algebraic properties of these best linear index numbers are examined in detail by theft and by kloek and dewit econometrica, 1961. The theil index in sequences of nested and hierarchic grouping structures article in eastern economic journal 27 may 2000 with 30 reads how we measure reads. The theil index t is a monotonically increasing measure of inequality, bounded by 0, log n. The theil index in sequences of nested and hierarchic. Henri theil s book on information theory theil 1967 provided a landmark in the development of the analysis of inequality measurement.
Monetary aggregation theory and statistical index numbers. Empirical examples for these principles are also provided. Biostatistics with rnonparametric and distributionfree. This is plainly wrong, as atkins index with epsilono is equal to zero. It includes pointers to where those keywords or concepts are mentioned in the booktypically page n. The handbook of inequality and socioeconomic position. Selective inclusion of child content in a binding example 76. I am not principally an econometrician, but i know theil invented more than one parameter. A symmetrized theil index measure of health disparities. What is the difference between the gini coefficient and. The only known transformation is theilsa0 to atkins with e1, although i can assure you that using a1teepsilon from theilsa0 for theil. Inequality of industrial carbon emissions of the urban. The theil index is a statistic primarily used to measure economic inequality and other economic phenomena, though it has also been used to measure racial segregation the theil index t t is the same as redundancy in information theory which is the maximum possible entropy of the data minus the observed entropy. The definition of a generalised inequality index is the following.
Ive been advised to use ineqdeco however, ive no experience with the command. The significance of the landmark was, perhaps, not fully realised for some time but. Focus on the provincial inequalities in energy consumption. Figure 3 also shows a lack of agreement among measures of relative disparity that differ with respect to population weighting.
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