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Polarization: Concepts, Measurement, Estimation

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Author Info
Jean-Yves Duclos
Joan Esteban
Debraj Ray

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Abstract

We develop the measurement theory of polarization for the case in which income distributions can be described using density functions. The main theorem uniquely characterizes a class of polarization measures that fits into what we call the "identity-alienation" framework, and simultanously satisfies a set of axioms. Second, we provide sample estimators of population polarization indices that can be used to compare polarization across time or entities. Distribution-free statistical inference results are also used in order to ensure that the orderings of polarization across entities are not simply due to sampling noise. An illustration of the use of these tools using data from 21 countries shows that polarization and inequality orderings can often differ in practice. Copyright The Econometric Society 2004.

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File URL: http://hdl.handle.net/10.1111/j.1468-0262.2004.00552.x
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Publisher Info
Article provided by Econometric Society in its journal Econometrica.

Volume (Year): 72 (2004)
Issue (Month): 6 (November)
Pages: 1737-1772
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Handle: RePEc:ecm:emetrp:v:72:y:2004:i:6:p:1737-1772

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Conchita D'Ambrosio & Edward N. Wolff, 2001. "Is Wealth Becoming More Polarized in the United States?," Macroeconomics 0106006, EconWPA. [Downloadable!]
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  2. Esteban, Joan & Ray, Debraj, 1994. "On the Measurement of Polarization," Econometrica, Econometric Society, vol. 62(4), pages 819-51, July. [Downloadable!] (restricted)
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  3. Wang, You-Qiang & Tsui, Kai-Yuen, 2000. " Polarization Orderings and New Classes of Polarization Indices," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 2(3), pages 349-63. [Downloadable!] (restricted)
  4. Russell Davidson & Jean-Yves Duclos, 1997. "Statistical Inference for the Measurement of the Incidence of Taxes and Transfers," Econometrica, Econometric Society, vol. 65(6), pages 1453-1466, November.
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  5. Anderson, Gordon, 1996. "Nonparametric Tests of Stochastic Dominance in Income Distributions," Econometrica, Econometric Society, vol. 64(5), pages 1183-93, September. [Downloadable!] (restricted)
  6. Wolfson, Michael C, 1994. "When Inequalities Diverge," American Economic Review, American Economic Association, vol. 84(2), pages 353-58, May.
  7. Wolfson, Michael C, 1997. "Divergent Inequalities: Theory and Empirical Results," Review of Income and Wealth, Blackwell Publishing, vol. 43(4), pages 401-21, December.
  8. Esteban, Joan & Ray, Debraj, 1999. "Conflict and Distribution," Journal of Economic Theory, Elsevier, vol. 87(2), pages 379-415, August. [Downloadable!] (restricted)
  9. Davies, J. B. & Shorrocks, A. F., 1989. "Optimal grouping of income and wealth data," Journal of Econometrics, Elsevier, vol. 42(1), pages 97-108, September. [Downloadable!] (restricted)
  10. Beach, Charles M & Davidson, Russell, 1983. "Distribution-Free Statistical Inference with Lorenz Curves and Income Shares," Review of Economic Studies, Blackwell Publishing, vol. 50(4), pages 723-35, October. [Downloadable!] (restricted)
  11. Alesina, Alberto & Spolaore, Enrico, 1997. "On the Number and Size of Nations," The Quarterly Journal of Economics, MIT Press, vol. 112(4), pages 1027-56, November.
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  12. Bishop, John A & Chakraborti, S & Thistle, Paul D, 1989. "Asymptotically Distribution-Free Statistical Inference for Generalized Lorenz Curves," The Review of Economics and Statistics, MIT Press, vol. 71(4), pages 725-27, November. [Downloadable!] (restricted)
  13. Russell Davidson & Jean-Yves Duclos, 2000. "Statistical Inference for Stochastic Dominance and for the Measurement of Poverty and Inequality," Econometrica, Econometric Society, vol. 68(6), pages 1435-1464, November.
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  14. Xiaobo Zhang & Ravi Kanbur, 2001. "What difference do polarisation measures make? an application to China," The Journal of Development Studies, Taylor and Francis Journals, vol. 37(3), pages 85-98, January. [Downloadable!] (restricted)
  15. Kakwani, Nanak, 1993. "Statistical Inference in the Measurement of Poverty," The Review of Economics and Statistics, MIT Press, vol. 75(4), pages 632-39, November. [Downloadable!] (restricted)
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