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Theilindeksen

Theilindeksen, or Theil indices, are a family of statistical measures used to quantify inequality in a distribution, most commonly of income or expenditure. They were introduced by Dutch economist Henri Theil in the 1960s as part of the generalized entropy class of inequality measures. The Theil index is based on concepts from information theory and treats inequality as a deviation from perfect equality. In a population of N units with incomes y_i and average income μ, the Theil T index is commonly defined as T = (1/N) ∑ (y_i / μ) ln (y_i / μ). It is nonnegative and equals zero when all units have equal income; it reaches its maximum of ln N in the case of perfect concentration of income.

Theil indices also include Theil L, a related form that belongs to the same generalized entropy family

Applications of Theilindeksen span economics and social sciences, where they are used to measure income and

and
is
based
on
the
reciprocal
relation
to
income
shares.
The
Theil
indices
are
valued
for
their
decomposability:
the
overall
inequality
can
be
additively
decomposed
into
within-group
and
between-group
components,
allowing
researchers
to
assess
how
much
of
inequality
arises
within
groups
(such
as
regions,
sectors,
or
demographic
groups)
and
how
much
from
differences
between
groups.
wealth
distribution,
analyze
changes
over
time,
and
study
disparities
in
areas
such
as
energy
consumption
or
health
outcomes.
Potential
limitations
include
sensitivity
to
extreme
values,
the
requirement
for
positive
values
in
some
variants,
and
interpretation
that
depends
on
population
size
and
context.