A straightforward and versatile calculus for income inequality

A calculus based on one-parametric Lorenz curves is shown to enable versatile computations over income distributions. These computations focus on empirical as well as on conceptural issues. One empirical issue is the computation of the so-called equity parameter from support points of any Lorenz curve. One conceptual issue is a merger computation that allows for a novel separation of a population into a rich and a poor constituent. This separation allows that the two constituents mix rather than, conventionally, be divided by a given threshold value.

 FAW/n-report, updated version 2010.