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Inequality factor decomposition under uniform additions property with applications to Cameroonian rural data

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  • C. Chameni Nembua

Abstract

In this article, we generalize and extend the Morduch and Sicular's (2002) Coefficient of Variation (CV)-squared decomposition approach. This leads to a class of decomposition methods which satisfy the uniform additions principle, especially in the case of the Gini index. The regression-based method using the new formulations of component contributions is carried out. An application using Cameroonian data is provided to support the appropriateness of the procedure and to contrast our results to those of Morduch and Sicular.

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File URL: http://hdl.handle.net/10.1080/13504851.2011.629976
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics Letters.

Volume (Year): 19 (2012)
Issue (Month): 14 (September)
Pages: 1365-1371

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Handle: RePEc:taf:apeclt:v:19:y:2012:i:14:p:1365-1371

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  1. Frank Cowell & Carlo V. Fiorio, 2006. "Rethinking inequality decomposition: comment," LSE Research Online Documents on Economics, London School of Economics and Political Science, LSE Library 3782, London School of Economics and Political Science, LSE Library.
  2. Jonathan Morduch & Terry Sicular, 1998. "Rethinking Inequality Decomposition, with Evidence from Rural China," Harvard Institute of Economic Research Working Papers 1831, Harvard - Institute of Economic Research.
  3. Wan, Guanghua, 2002. "Regression-based Inequality Decomposition: Pitfalls and a Solution Procedure," Working Paper Series, World Institute for Development Economic Research (UNU-WIDER) UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  4. Lerman, Robert I & Yitzhaki, Shlomo, 1985. "Income Inequality Effects by Income," The Review of Economics and Statistics, MIT Press, vol. 67(1), pages 151-56, February.
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