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The Class of Absolute Decomposable Inequality Measures

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  • Kristof Bosmans
  • Frank A Cowell

Abstract

We provide a parsimonious axiomatisation of the complete class of absolute nequalityindices. Our approach uses only a weak form of decomposability and does not require a priori that the measures be differentiable.

Suggested Citation

  • Kristof Bosmans & Frank A Cowell, 2009. "The Class of Absolute Decomposable Inequality Measures," STICERD - Distributional Analysis Research Programme Papers 099, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
    • Handle: RePEc:cep:stidar:099
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    References listed on IDEAS

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    1. Kolm, Serge-Christophe, 1976. "Unequal inequalities. II," Journal of Economic Theory, Elsevier, vol. 13(1), pages 82-111, August.
    2. Anthony F. Shorrocks & James E. Foster, 1987. "Transfer Sensitive Inequality Measures," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 54(3), pages 485-497.
    3. Kolm, Serge-Christophe, 1976. "Unequal inequalities. I," Journal of Economic Theory, Elsevier, vol. 12(3), pages 416-442, June.
    4. Shorrocks, Anthony F, 1984. "Inequality Decomposition by Population Subgroups," Econometrica, Econometric Society, vol. 52(6), pages 1369-1385, November.
    5. Satya Chakravarty & Swami Tyagarupananda, 2009. "The subgroup decomposable intermediate indices of inequality," Spanish Economic Review, Springer;Spanish Economic Association, vol. 11(2), pages 83-97, June.
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    Cited by:

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    3. Niaz Asadullah & Alain Trannoy & Sandy Tubeuf & Gaston Yalonetzky, 2018. "Fair and unfair educational inequality in a developing country: The role of pupil’s effort," Working Papers 474, ECINEQ, Society for the Study of Economic Inequality.
    4. Ibragimova, Zulfiya & Frants, Marina, 2021. "Measuring income opportunity inequality: A structural review and meta-analysis," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 61, pages 89-109.
    5. Asadullah, M. Niaz & Trannoy, Alain & Tubeuf, Sandy & Yalonetzky, Gaston, 2021. "Measuring educational inequality of opportunity: pupil’s effort matters," World Development, Elsevier, vol. 138(C).
    6. Suman Seth, Sabina Alkire, 2014. "Measuring and Decomposing Inequality among the Multidimensionally Poor Using Ordinal Data: A Counting Approach," OPHI Working Papers 68, Queen Elizabeth House, University of Oxford.
    7. Leoneti, A.B. & Prataviera, G.A., 2020. "Entropy-norm space for geometric selection of strict Nash equilibria in n-person games," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 546(C).
    8. Buhong Zheng, 2021. "Stochastic dominance and decomposable measures of inequality and poverty," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 23(2), pages 228-247, April.
    9. Satya R. Chakravarty & Nachiketa Chattopadhyay & Conchita D'Ambrosio, 2016. "On a Family of Achievement and Shortfall Inequality Indices," Health Economics, John Wiley & Sons, Ltd., vol. 25(12), pages 1503-1513, December.
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    12. Thomas Goda & Alejandro Torres García, 2017. "The Rising Tide of Absolute Global Income Inequality During 1850–2010: Is It Driven by Inequality Within or Between Countries?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 130(3), pages 1051-1072, February.
    13. Frank A. Cowell & Philippe Kerm, 2015. "Wealth Inequality: A Survey," Journal of Economic Surveys, Wiley Blackwell, vol. 29(4), pages 671-710, September.
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    15. Casilda Lasso de la Vega & Oscar Volij, 2020. "The Measurement Of Income Segregation," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 61(4), pages 1479-1500, November.
    16. Lasso de la Vega, Casilda & Aristondo, Oihana, 2012. "Proposing indicators to measure achievement and shortfall inequality consistently," Journal of Health Economics, Elsevier, vol. 31(4), pages 578-583.
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    19. Pedro Gerber Machado & Julia Tomei & Adam Hawkes & Celma de Oliveira Ribeiro, 2020. "A Simulator to Determine the Evolution of Disparities in Food Consumption between Socio-Economic Groups: A Brazilian Case Study," Sustainability, MDPI, vol. 12(15), pages 1-24, July.

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    More about this item

    Keywords

    inequality measures; decomposability; translation invariance;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation

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