Multifactor Inequality: Substitution Effects for Income Sources in Mexico
AbstractIncome is a poor indicator of welfare and should be use only as a as component of welfare. Wealth provides another dimension of well-being. We use the Kullback-Leibler Information Criterion (KLIC, hereafter) as a measure of the discrepancy between two attributes. This will allow economists and researchers to understand the kind of relationship that the attributes hold. The applications deals with an unusual analysis of income factors in which we treat them as different attributes. This allows us to estimate the substitution effects among income factors.
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Bibliographic InfoPaper provided by ECINEQ, Society for the Study of Economic Inequality in its series Working Papers with number 31.
Length: 17 pages
Date of creation: 2006
Date of revision:
entropy; cross-entropy; KLIC; multi-attribute; multifactor; welfare matrix; Theil index; Gini index;
Find related papers by JEL classification:
- D33 - Microeconomics - - Distribution - - - Factor Income Distribution
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-03-19 (All new papers)
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