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Abstract

This paper discusses various measures of poverty and inequality found in the literature. Inequality measures discussed include the range, the variance, the coefficient of variation, the standard deviation of logarithms, the Gini coefficient, Theil's Entropy measure and Atkinson's inequality measure. Of these the mean log deviation, the Theil index and the coefficient of variation have come to be known as the Generalised Entropy class of inequality measures. As far as poverty indicators are concerned the Foster-Greer-Thorbecke measures, a class of generalised decomposable poverty measures, have become very popular in the literature. The paper also discusses some Stata do-files that were written in order to calculate poverty and inequality measures, with application to the Income and Expenditure Survey data of 1995.

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