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A spatial decomposition of the Gini coefficient

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  • Sergio Rey
  • Richard Smith

Abstract

The paper introduces a spatial decomposition of the Gini coefficient that supports the detection of spatial autocorrelation conjointly with an indicator of overall inequality. An additive pairwise decomposition based on a spatial weights matrix partitions inequality between observations that are geographically neighbors and those that are not. A framework for inference on the spatial decomposition is also suggested. The statistical properties of the decomposition measure are evaluated in a Monte Carlo simulation and an empirical illustration involving per capita income inequality in the US states is also provided. Copyright Springer-Verlag 2013

Suggested Citation

  • Sergio Rey & Richard Smith, 2013. "A spatial decomposition of the Gini coefficient," Letters in Spatial and Resource Sciences, Springer, vol. 6(2), pages 55-70, July.
    • Handle: RePEc:spr:lsprsc:v:6:y:2013:i:2:p:55-70
    DOI: 10.1007/s12076-012-0086-z
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    References listed on IDEAS

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    4. Miguel A. Márquez & Elena Lasarte & Marcelo Lufin, 2019. "The Role of Neighborhood in the Analysis of Spatial Economic Inequality," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 141(1), pages 245-273, January.
    5. Luis Ayala & Javier Martín‐Román & Juan Vicente, 2020. "The contribution of the spatial dimension to inequality: A counterfactual analysis for OECD countries," Papers in Regional Science, Wiley Blackwell, vol. 99(3), pages 447-477, June.
    6. Gemechis Teshome & Leta Sera & Amsalu Dachito, 2021. "Determinants of income inequality among urban households in Ethiopia: a case of Nekemte Town," SN Business & Economics, Springer, vol. 1(11), pages 1-21, November.
    7. Richard J. Smith & Sergio J. Rey, 2018. "Spatial approaches to measure subnational inequality: Implications for Sustainable Development Goals," Development Policy Review, Overseas Development Institute, vol. 36(S2), pages 657-675, September.
    8. Panagiotis Artelaris, 2021. "Regional economic growth and inequality in Greece," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(1), pages 141-158, February.
    9. Gordon Cromley & Jie Lin, 2023. "Examining the interplay between racial segregation patterns and access to hospital care," Environment and Planning B, , vol. 50(1), pages 117-129, January.
    10. Ricardo Crespo & Ignacio Hernandez, 2020. "On the spatially explicit Gini coefficient: the case study of Chile—a high-income developing country," Letters in Spatial and Resource Sciences, Springer, vol. 13(1), pages 37-47, April.
    11. Mirco Nanni & Leandro Tortosa & José F Vicent & Gevorg Yeghikyan, 2020. "Ranking places in attributed temporal urban mobility networks," PLOS ONE, Public Library of Science, vol. 15(10), pages 1-25, October.
    12. Domenica Panzera & Paolo Postiglione, 2020. "Measuring the Spatial Dimension of Regional Inequality: An Approach Based on the Gini Correlation Measure," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 148(2), pages 379-394, April.
    13. Francesco Andreoli & Mauro Mussini & Vincenzo Prete & Claudio Zoli, 2021. "Urban poverty: Measurement theory and evidence from American cities," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 19(4), pages 599-642, December.
    14. Domenica Panzera & Alfredo Cartone & Paolo Postiglione, 2022. "New evidence on measuring the geographical concentration of economic activities," Papers in Regional Science, Wiley Blackwell, vol. 101(1), pages 59-79, February.
    15. Maëlys Waiengnier & Gilles Van Hamme & Reijer Hendrikse & David Bassens, 2020. "Metropolitan Geographies of Advanced Producer Services: Centrality and Concentration in Brussels," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 111(4), pages 585-600, September.
    16. Francesco Andreoli & Arnaud Mertens & Mauro Mussini & Vincenzo Prete, 2022. "Understanding trends and drivers of urban poverty in American cities," Empirical Economics, Springer, vol. 63(3), pages 1663-1705, September.
    17. Umut Türk & John Östh, 2023. "Introducing a spatially explicit Gini measure for spatial segregation," Journal of Geographical Systems, Springer, vol. 25(4), pages 469-488, October.
    18. Vojtěch Nosek & Pavlína Netrdová, 2017. "What values of Moran’s I and Theil index decomposition really mean under different conditions: on the issue of interpretation," Letters in Spatial and Resource Sciences, Springer, vol. 10(2), pages 149-159, July.
    19. Builes-Jaramillo, Alejandro & Lotero, Laura, 2020. "Closeness matters. Spatial autocorrelation and relationship between socioeconomic indices and distance to departmental Colombian capitals," Socio-Economic Planning Sciences, Elsevier, vol. 70(C).

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    More about this item

    Keywords

    Spatial inequality; Spatial autocorrelation; R1; D63; R12; C15; C63;
    All these keywords.

    JEL classification:

    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General
    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques

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