Income inequality games
AbstractThe paper explores different applications of the Shapley value for either inequality or poverty measures. We first investigate the problem of source decomposition of inequality measures, the so-called additive income sources inequality games, baed on the Shapley Value, introduced by Chantreuil and Trannoy (1999) and Shorrocks (1999). We show that multiplicative income sources inequality games provide dual results compared with Chantreuil and Trannoy's ones. We also investigate the case of multiplicative poverty games for which indices are non additively decomposable in order to capture contributions of sub-indices, which are multiplicatively connected with, as in the Sen-Shorrocks-Thon poverty index. We finally show in the case of additive poverty indices that the Shapley value may be equivalent to traditional methods of decomposition such as subgroup consistency and additive decompositions.
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Bibliographic InfoArticle provided by Springer in its journal The Journal of Economic Inequality.
Volume (Year): 9 (2011)
Issue (Month): 4 (December)
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Web page: http://springerlink.metapress.com/link.asp?id=111137
Inequality; Poverty; Shapley; Source decomposition; Subgroup decomposition; D31; D63;
Other versions of this item:
- Arthur Charpentier & Stéphane Mussard, 2010. "Income Inequality Games," Working Papers 10-01, LAMETA, Universtiy of Montpellier, revised Jan 2010.
- Arthur Charpentier & Stephane Mussard, 2010. "Income Inequality Games," Cahiers de recherche 10-03, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke.
- Arthur Charpentier & Stéphane Mussard, 2010. "Income Inequality Games," Working Papers hal-00456573, HAL.
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
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