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Polarization Orderings Of Income Distributions

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  • Satya R. Chakravarty
  • Conchita D'Ambrosio

Abstract

This paper considers an intermediate notion of polarization which is defined as a convex mix of relative and absolute concepts of polarization. While absolute polarization indices remain unchanged under equal absolute augmentation in all incomes, relative indices do not change under equiproportionate variations in all incomes. We then identify the class of intermediate polarization indices whose orderings of alternative income distributions agree with the rankings generated by intermediate polarization curves. The ranking relation developed is implemented by a simple graphical device. Finally, a numerical illustration of the results developed in the paper is provided using data from Southern European countries. Copyright 2009 The Authors. Journal compilation International Association for Research in Income and Wealth 2009.

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Bibliographic Info

Article provided by International Association for Research in Income and Wealth in its journal Review of Income and Wealth.

Volume (Year): 56 (2010)
Issue (Month): 1 (03)
Pages: 47-64

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Handle: RePEc:bla:revinw:v:56:y:2010:i:1:p:47-64

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Cited by:
  1. Peter Lambert, 2010. "James Foster and Michael Wolfson’s 1992 paper “Polarization and the decline of the middle class”," Journal of Economic Inequality, Springer, vol. 8(2), pages 241-245, June.
  2. M-super-a Casilda Lasso de la Vega & Ana Urrutia & Henar Díez, 2010. "Unit Consistency And Bipolarization Of Income Distributions," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 56(1), pages 65-83, 03.
  3. Michal Brzezinski, 2013. "Income polarization and economic growth," National Bank of Poland Working Papers 147, National Bank of Poland, Economic Institute.
  4. Deutsch, Joseph & Fusco, Alessio & Silber, Jacques, 2012. "The BIP trilogy (bipolarization, inequality and polarization): One saga but three different stories," Economics Discussion Papers 2012-49, Kiel Institute for the World Economy.
  5. Gaston Yalonetzky, 2014. "Relative bipolarization Lorenz curve," Economics Bulletin, AccessEcon, vol. 34(2), pages 1103-1113.
  6. Gaston Yalonetzky, 2013. "Relative bipolarization quasi-ordering based on Between-Group Gini (BGG) curves," Working Papers 318, ECINEQ, Society for the Study of Economic Inequality.

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