The **Theil index** is a statistic used to measure economic inequality. It has also been used to measure the lack of racial diversity. The basic 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. It is a special case of the generalized entropy index. It can be viewed as a measure of redundancy, lack of diversity, isolation, segregation, inequality, non-randomness, and compressibility. It was proposed by econometrician Henri Theil, a successor of Jan Tinbergen at the Erasmus University Rotterdam.

Read more about Theil Index: Formulas, Derivation From Entropy, Application of The Theil Index, Meaning of "U", Decomposability, Applications

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