Theil Index

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 TT 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 IndexFormulas, Derivation From Entropy, Application of The Theil Index, Meaning of "U", Decomposability, Applications

Other articles related to "theil index, index, theil":

Theil Index - Applications
... to multitude of economic applications, the Theil index has been applied to assess performance of irrigation systems and distribution of software metrics ...
Cardinal Social Welfare Functions
... nation) is multiplied with where is the Gini index, a relative inequality measure ... Due to the relation between Atkinsons entropy measure and the Theil index, Foster's welfare function also can be computed directly using the Theil-L Index The value yielded by this function has a ... income will be smaller than the average per capita income Here the Theil-T index is applied ...

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