A note on the 'natural rate of subjective inequality' hypothesis and the approximate relationship between the Gini coefficient and the Atkinson index

In a recent paper in this journal, Lambert et al. [J. Public Econ. 87 (2003) 1061] sought to establish the natural rate of subjective inequality (NRSI) hypothesis. Their statistical analysis, however, may have simply identified a relationship between the Gini coefficient and the Atkinson index, rather than confirm the existence of a NRSI. In this note, an approximate relationship between the Gini coefficient and Atkinson index is identified using simulation analysis. This finding does not appear to overturn the NRSI hypothesis and indicates the need for further investigation of this insightful and potentially far-reaching hypothesis.