Inequality and negative income

Abstract

This note deals with some problems in the measurement of inequality when negative incomes are allowed. A new axiom is defined, called the Greatest Gets More axiom. Using this axiom it can be shown that the properties of some inequality measures depend on whether there are negative incomes or not. In this paper, for the intermediate measures of Eichhorn and the centrist inequality measures of Kolm a threshold value is given above which the Greatest Gets More axiom holds.