Socio-economic inequality and prospects of institutional Econophysics

TL;DR

This paper reviews socio-economic inequality measures like the Gini and Kolkata indices, exploring their relationship, implications in social conflicts and natural disasters, and proposes an international collaborative institution for further research.

Contribution

It provides a comprehensive review of inequality indices, analyzes their interrelation, and suggests establishing an international platform for interdisciplinary discussions.

Findings

The Gini and Kolkata indices are correlated in measuring inequality.

Socio-economic inequalities influence social conflicts and natural disasters.

Proposes an international institution for collaborative research on inequality.

Abstract

Socio-economic inequality is measured using various indices. The Gini ($g$) index, giving the overall inequality is the most commonly used, while the recently introduced Kolkata ($k$) index gives a measure of $1-k$ fraction of population who possess top $k$ fraction of wealth in the society. This article reviews the character of such inequalities, as seen from a variety of data sources, the apparent relationship between the two indices, and what toy models tell us. These socio-economic inequalities are also investigated in the context of man-made social conflicts or wars, as well as in natural disasters. Finally, we forward a proposal for an international institution with sufficient fund for visitors, where natural and social scientists from various institutions of the world can come to discuss, debate and formulate further developments.