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A spatial decomposition of the Gini coefficient

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  • Sergio Rey

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  • Richard Smith
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    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

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    File URL: http://hdl.handle.net/10.1007/s12076-012-0086-z
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    Bibliographic Info

    Article provided by Springer in its journal Letters in Spatial and Resource Sciences.

    Volume (Year): 6 (2013)
    Issue (Month): 2 (July)
    Pages: 55-70

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    Handle: RePEc:spr:lsprsc:v:6:y:2013:i:2:p:55-70

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    Web page: http://www.springer.com/economics/journal/12076

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    Related research

    Keywords: Spatial inequality; Spatial autocorrelation; R1; D63; R12; C15; C63;

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    References

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    1. Briant, A. & Combes, P.-P. & Lafourcade, M., 2010. "Dots to boxes: Do the size and shape of spatial units jeopardize economic geography estimations?," Journal of Urban Economics, Elsevier, vol. 67(3), pages 287-302, May.
    2. Schelling, Thomas C, 1969. "Models of Segregation," American Economic Review, American Economic Association, vol. 59(2), pages 488-93, May.
    3. Arbia, Giuseppe & Piras, Gianfranco, 2009. "A new class of spatial concentration measures," Computational Statistics & Data Analysis, Elsevier, vol. 53(12), pages 4471-4481, October.
    4. Shorrocks, Anthony & Wan, Guanghua, 2004. "Spatial Decomposition of Inequality," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
    5. Casey J. Dawkins, 2007. "Space And The Measurement Of Income Segregation," Journal of Regional Science, Wiley Blackwell, vol. 47(2), pages 255-272.
    6. Silber, Jacques, 1989. "Factor Components, Population Subgroups and the Computation of the Gini Index of Inequality," The Review of Economics and Statistics, MIT Press, vol. 71(1), pages 107-15, February.
    7. Clark, Stephen & Hemming, Richard & Ulph, David, 1981. "On Indices for the Measurement of Poverty," Economic Journal, Royal Economic Society, vol. 91(362), pages 515-26, June.
    8. Kanbur, Ravi, 2003. "The Policy Significance of Inequality Decompositions," Working Papers 127237, Cornell University, Department of Applied Economics and Management.
    9. Frank Bickenbach & Eckhardt Bode, 2006. "Disproportionality Measures of Concentration, Specialization, and Polarization," Kiel Working Papers 1276, Kiel Institute for the World Economy.
    10. Sergio J. Rey & Mark V. Janikas, 2004. "STARS: Space-Time Analysis of Regional Systems," Urban/Regional 0406001, EconWPA.
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