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The multi-decomposition of the Hirschman-Herfindahl index: measuring household inequality in Cameroon, 1996-2001

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  • C. Chameni Nembua

Abstract

This research proposes a new decomposition of the Hirschman-Herfindahl index (which is equal to half the square of the coefficient of variation) into subgroup and income source. The method for decomposing into subgroups is similar to that used by Dagum when decomposing Gini's index. This bidimensional decomposition helps measure the contributions of income sources taken independently and the contributions arising from links between pairs of these income sources within and between subgroups. This approach gives rise to new components of the total inequality. The method is used here to break down and analyse the evolution of household expenditure inequality in Cameroon during the period 1996 to 2001. The analysis reveals that the inequality has substantially increased in the urban areas, a situation blamed to a large extent on expenditures on equipment-furniture-goods and services; while inequality declined in the rural areas.

Suggested Citation

  • C. Chameni Nembua, 2007. "The multi-decomposition of the Hirschman-Herfindahl index: measuring household inequality in Cameroon, 1996-2001," Applied Economics Letters, Taylor & Francis Journals, vol. 14(1), pages 27-34.
    • Handle: RePEc:taf:apeclt:v:14:y:2007:i:1:p:27-34
    DOI: 10.1080/13504850500425568
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    References listed on IDEAS

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    1. Stephane Mussard, 2004. "The bidimensional decomposition of the Gini ratio. A case study: Italy," Applied Economics Letters, Taylor & Francis Journals, vol. 11(8), pages 503-505.
    2. repec:ebl:ecbull:v:4:y:2003:i:7:p:1-6 is not listed on IDEAS
    3. Gaurav Datt & Thomas Walker, 2004. "Recent evolution of inequality in East Asia," Applied Economics Letters, Taylor & Francis Journals, vol. 11(2), pages 75-79.
    4. Martin Biewen, 2002. "Measuring inequality in the presence of intra-household correlation," Applied Economics Letters, Taylor & Francis Journals, vol. 9(15), pages 1003-1006.
    5. Stéphane Mussard & Michel Terraza & Françoise Seyte, 2003. "Decomposition of Gini and the generalized entropy inequality measures," Economics Bulletin, AccessEcon, vol. 4(7), pages 1-6.
    6. Dagum, Camilo, 1997. "A New Approach to the Decomposition of the Gini Income Inequality Ratio," Empirical Economics, Springer, vol. 22(4), pages 515-531.
    7. repec:ebl:ecbull:v:4:y:2003:i:3:p:1-5 is not listed on IDEAS
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    Cited by:

    1. Ba, Zhichao & Mao, Jin & Ma, Yaxue & Liang, Zhentao, 2021. "Exploring the effect of city-level collaboration and knowledge networks on innovation: Evidence from energy conservation field," Journal of Informetrics, Elsevier, vol. 15(3).
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    3. C. Chameni Nembua, 2012. "On a class of bi-polarization variance-based measurement: evidence from Cameroonian data," Applied Economics Letters, Taylor & Francis Journals, vol. 19(13), pages 1311-1317, September.
    4. Amjad Naveed & Cong Wang, 2018. "Can religion explain cross-country differences in inequality? A global perspective," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 50(3), pages 481-518, March.

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