Götz Kluge · @floh
23 followers · 32 posts · Server zirk.us2/2
If you assume that equality is "order" and thus a antonym for "disorder", then you may believe - Sen even calls it a "fact" - that the #TheilCoefficient is computed from an "#ArbitraryFormula".
However, there is no contradiction: The Theil index is a #redundancy, where the actual redundancy (ISO/IEC 2382-16) of a system is computed as the #MaximumEntropy of that system minus the actual entropy of that system. That is the answer to Sen's objection!
#theilcoefficient #arbitraryformula #redundancy #maximumentropy #giniindex #kolmindex #welfareeconomics
Götz Kluge · @floh
23 followers · 32 posts · Server zirk.us2/2
If you assume that equality is "order" and thus a antonym for "disorder", then you may believe - Sen even calls it a "fact" - that the #TheilCoefficient is computed from an "#ArbitraryFormula".
However, there is no contradiction: The Theil index is a #redundancy, where the actual redundancy (ISO/IEC 2382-16) of a system is computed as the #MaximumEntropy of that system minus the actual entropy of that system. That is the answer to Sen's objection!
#theilcoefficient #arbitraryformula #redundancy #maximumentropy