Milanovic, Branko2013-09-042013-09-042013-05https://hdl.handle.net/10986/15589This paper extends the Inequality Possibility Frontier approach in two methodological directions. It allows the social minimum to increase with the average income of a society, and it derives all the Inequality Possibility Frontier statistics for two other inequality measures besides the Gini. Finally, it applies the framework to contemporary data, showing that the inequality extraction ratio can be used in the empirical analysis of post-1960 civil conflict around the world. The duration of conflict and the casualty rate are positively associated with the inequality extraction ratio, that is, with the extent to which elite pushes the actual inequality closer to its maximum level. Inequality, albeit slightly reformulated, is thus shown to play a role in explaining civil conflict.en-USCC BY 3.0 IGOABSOLUTE POVERTYABSOLUTE POVERTY LINEAVERAGE INCOMEAVERAGE INCOME LEVELAVERAGE INCOMESBENCHMARKINGCLASSICAL ECONOMISTSCONFLICTDEPENDENT VARIABLEDEVELOPING WORLDDEVELOPMENT POLICYECONOMIC DEVELOPMENTECONOMIC HISTORYECONOMIC RESEARCHELASTICITYEMPIRICAL ANALYSISEMPIRICAL EVIDENCEEMPIRICAL WORKEXPLANATORY POWEREXPLANATORY VARIABLESFAMILY BUDGET SURVEYSGDPGDP PER CAPITAGINI COEFFICIENTGINI INDEXHEALTH INSURANCEHOUSEHOLD INCOMEINCOME DISTRIBUTIONINCOME STUDYINCOMESINDIVIDUAL INCOMESINDUSTRIAL ECONOMIESINEQUALITIESINEQUALITYINEQUALITY ESTIMATESINEQUALITY MEASUREINEQUALITY MEASUREMENTINEQUALITY MEASURESLIVING STANDARDSMEAN INCOMEMEAN INCOMESMEAN LOG DEVIATIONMEASURED INEQUALITYMEASURING INEQUALITYMINIMUM INCOMEOFFICIAL POVERTY LINESPER CAPITA INCOMEPOLICY DISCUSSIONSPOLICY RESEARCHPOLITICAL SCIENCEPOORPOOR PEOPLEPOVERTY LINESPOVERTY REDUCTIONPOVERTY THRESHOLDPRISONERREAL INCOMEREAL PER CAPITA INCOMEREGRESSION RESULTSRELATIVE POVERTYSIGNIFICANT IMPROVEMENTSTATISTICAL DATAWARWEALTHWILLWorld Bank10.1596/1813-9450-6449